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Copper is one of the most widely used industrial metals out there. It’s in our homes, offices, cars, electronics, appliances, etc. It’s everywhere.

Since it’s “everywhere” in our economy, it makes a good gauge as to where the economy is going…and for that matter the global economy too. If copper prices are rising, it’s because the global demand for the metal is rising due to global economic expansion.

However, if copper’s price is diving, it’s because the world is slowing down economically.

Well, right now copper is at the crossroads. It’s coiling up in a Symmetrical Triangle pattern. This is a consolidation/range-bound pattern that has a sharp breakout once one side of the triangle is penetrated.

Check it out below. Click on the chart to enlarge it.

If copper breaks to the up side…it’s a good sign for the global economy. It shows that it is likely on the mend and growing. However, if it breaks down southward out of that triangle, it shows that things are still terrible out there and that the debt crisis in Europe and high oil prices, etc. are still holding the global economy down.

But not only will this show where copper and the global economy is going..,.but it will also show where several of the commodity-currencies are going too.

It’s no coincidence that the Australian dollar is coiling up while copper is doing the same thing. Not only is the Aussie sensitive to copper prices because they mine and export the metal…but also because the Aussie dollar is very sensitive to what the global economy is doing (whether growing or shrinking). So the Aussie dollar and other commodity currencies will soon breakout too once it is seen what copper does. Check out the daily chart of the Aussie dollar below.

So you won’t have to depend upon lagging economic data to tell you how the world is doing economically. Copper will give you “the report card” on how the world is doing shortly. Be patient…wait for the breakout and then you’ll know how things are going. It won’t be long. Copper is almost to the end of its triangle. So a breakout will come soon