Copper settled -1.29% down at 440.90 eased off a six-week high as market players looked ahead to the ECB's policy decision later in the day and US jobs data on Friday. Investors also continued to monitor negotiations among US lawmakers to avoid the looming “fiscal cliff” crisis. Earlier in the week metal gained as sentiment on the industrial metal was boosted after comments from a meeting of China’s new leaders implied that supportive economic policy would remain in place. Despite better-than-expected factory orders in Germany, the ECB slashed expectations on the euro zone's economic growth and inflation. Besides, the ECB President indicated discussions on a further cut in the interest rate at the next monthly policy meeting, causing the euro to fall significantly below 1.29 and hit the lowest level in one week. Meanwhile, Obama pointed out the Republican Party's new budget plan is still unbalanced and proposed to raise tax for the highest-earning 2% of Americans. This led US equity markets to fluctuate at current values and turned investors to the sidelines. Investors continued to monitor developments surrounding the fiscal cliff in the US, approximately USD 600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the four weeks left before the deadline. For today's session market is looking to take support at 438.5, a break below could see a test of 436 and where as resistance is now likely to be seen at 444.8, a move above could see prices testing 448.7.

Trading Ideas:

Copper trading range for the day is 436-448.8.

Copper dipped as the dollar rose and euro fell after European Central Bank sharply downgraded its outlook for region's economy

ECB said the euro zone economy is likely to shrink next year as it has in 2012 downgrading its outlook

Metals prices had seen some support on signs demand is improving in China, despite record stockpiles.