Arabica coffee term 12/2022 (KCEZ22) rebounded at the end of the week, up 1.50 cents (+0.71%), closing price at 213.35 cents/lbs.
The USD index rose 0.36% to 107.96 in the context of the market predicting a 54% chance of the Fed raising interest rates by 0.5%, the remaining 46% predicting a 0.75% increase in the upcoming September meeting of the Fed. . The Real fell slightly against the USD, 1 USD = 5.1800-5.2000 BRL.
The level of coffee inventory that meets the standards of ICE floor is still recorded to increase when the available inventory is waiting to be tested for floor quality, the actual output has not increased. Weather information has not had any new developments. In the short term, in the next few days, the price will fluctuate unpredictably due to the movement of the futures of investors.
According to technical analysis, in the short term, the technical indicators show neutral signals, the price is still struggling sideways in the range of 205-230. However, MACD is converging downward, so it is likely that in the short term, the price will drop to find support. The zone 205-208 is a hard support zone in the short term for Arabica price, further than 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: 210 – 210.5 cents
- Support zone 2: 207-207.5 cents
- Stop Loss: 205 cents
CL SELL DOWN:
- Resistance zone 1: 217 – 217.5 cents
- Resistance zone 2: 220.5-221 cents
- Stop Loss: 225 cents
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