Arabica coffee term September 2022 (KCEU22) continued to increase slightly, increasing 1.65 cents (+0.76%), closing price at 218.15 cents/lbs.
Although the USD had a reversal session, the cash flow was still temporarily standing outside the coffee floor to observe and wait for more information on the ECB’s interest rate policies today and the FED next week. Coffee prices on the New York floor were supported by a slight increase of the low supply information. Real is fluctuating around 1 USD = 5.45-5.46 BRL.
Arabica coffee prices continue to be supported by ICE coffee inventory data continuously setting a new bottom to 718.6 thousand bags, the lowest level in the past 23 years. According to the world’s largest coffee cooperative Cooxupe, the harvest is 42%, and the climate continues to favor the harvest but the pace is still slower than in recent years.
According to technical analysis, Arabica price is looking to retest the MA200 line at the price area of 218-222, if successful, it is a bright signal for Arabica price. The daily chart shows neutral signal, the price trend is not clear yet. In the current context that the price of coffee on the New York floor is being directly affected by the strength of the USD, customers need to observe more about the evolution of interest rate policy of the ECB today and of the Fed next week and wait for the price. about resistance, good support before coming up with a new trading strategy.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 212 – 212.5 cents
- Support zone 2: 210-210.5 cents
- Stop Loss: 204 cents
CL SELL DOWN:
- Resistance zone 1: 220 – 221 cents
- Resistance zone 2: 225.5-226 cents
- Stop Loss: 231 cents
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