Copper prices fell as worries about a global economic slowdown and the ongoing euro zone debt crisis reinforced gloomy prospects for growth and demand, while a stronger dollar also undermined sentiment made prices to settled once again down 401.8 that is -0.63%. Sentiment was hit by data from the US economy, showing new claims for unemployment benefits rose more than expected last week, while other figures showed factory activity in the US Mid-Atlantic region fell to the lowest level since Mar'09. Caution in financial markets helped push the dollar higher against a basket of currencies, making commodities priced in the US unit more expensive for holders of other currencies. Debt crises in the euro zone and the US have in recent weeks hit the copper price, which is down more than 10% since Aug. 1, when it touched $9,905 a tonne, the highest since April. Moves by China to tighten monetary policy in a bid to rein in stubbornly high inflation have meant curbs on economic activity and fears of slower demand growth for metals. Even the stronger yuan may not boost China's commodity imports, while markets such as the US and Europe face economic uncertainty. For today's session market is looking to take support at 399.2, a break below could see a test of 396.6 and where as resistance is now likely to be seen at 405.3, a move above could see prices testing 408.8.

Trading Ideas:

Copper trading range is 396.6-408.8.

Copper prices tumbled as investors shed risky assets amid weak US data and fresh concerns on Europe's banks.

China's domestic prices are currently higher than import prices which could encourage more Chinese imports

Copper market recorded a 107,400tns surplus in H2 2011, according to the latest statistics from the WBMS