Arabica coffee term September 2022 (KCEU22) sellers are still dominant, down 1.90 cents (-0.87%), closing price at 217.45 cents/lbs.
Arabica coffee prices are still under downward pressure because of the dominant monetary factor. Investors are still actively buying the USD, pushing the USD up slightly by 0.27% to 106.76 in the context that the market bets on the next move of the Fed to raise interest rates to control inflation stronger even though the US consumer price index in July rose less than last month. The Real continued to decrease by 0.52% against the USD, 1 USD = 5.1670 BRL.
The level of ICE-standard coffee inventories has recorded an increase in volume after a series of consecutive days of decline with an increase of more than 5600 bags on August 16, reaching 577,000 bags. Brazil’s coffee harvest rate has reached 79% of the harvested area, similar to last year’s harvest rate with a higher expected yield.
According to technical analysis, in the short term, the technical indicators showing price signals are still struggling sideways in the range of 210-230. However, MACD is converging downward, so it is likely that in the short term, the price will drop to find support. The zone 208-210 is a hard support in the short term for Arabica price, further away from the psychological resistance level of 200. On the other hand, the price needs to surpass the 230 level to attract strong buying force from the buyers.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 214.5 – 215 cents
- Support zone 2: 212-212.5 cents
- Stop Loss: 208 cents
CL SELL DOWN:
- Resistance zone 1: 224.5 – 225 cents
- Resistance zone 2: 227.5-228 cents
- Stop Loss: 231 cents
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