"After such falls, people are likely to try the downside again, although it would not be surprising if we saw some short-covering by speculators," said a trader at a leading trade house. "Given the dollar's strength, it's difficult to expect buying from Asia or Europe," the trader added.

As of 0440 GMT, three months copper was indicated at $1,656/$1,661 per tonne after shedding $36 to $1,662 in London overnight.

Aluminium was at $1,360/$1,364, little changed from the London close of $1,363. Traders predicted further losses for copper, with the next target at $1,630 if it failed to defend support at around $1,660. Aluminium was also likely to fall after the decline on Tuesday triggered by news that striking miners in Russia had eased their blockade of railways supplying smelters in Siberia, traderssaid.

Some traders said they expected the current level to become the market's floor unless weakness in copper dragged prices lower. However, one trader said: "Unless we see some buying related to physical demand, we expect aluminium to go down further. Once it breaches the $1,355 level, there is no major support until the low at $1,305 seen in October, 1996."