Arabica coffee term 12/2022 (KCEZ22) had a strong increase in the first session of the week, up 7.85 cents (+3.68%), closing price at 221.20 cents/lbs.
The USD index rose 0.5% to 108.71 in the context of the market’s concern that the upcoming Fed rate hike will cause a side effect of slowing down the economy, which is severely affected by inflation. high. The Real rose slightly against the USD currently trading around 1 USD = 5.1600-5.1700 BRL.
Arabica coffee has a stronger increase than London floor coffee thanks to the support of weather information. According to reports, the southeastern coffee growing region of Brazil is dry due to the impact of La Nina phenomenon. Farmers and investors are concerned that this weather phenomenon will adversely affect Brazil’s coffee supply in the future.
According to technical analysis, the technical indicators are showing neutral signals, the price is still struggling sideways in the range of 205-230. However, yesterday’s bullish candle pulled the price to sustain above the converging MA and MACD lines, so the possibility of bullish momentum remains with the important resistance area at 230 and the distant target. than 240. On the other hand, the 205-208 zone is a hard support in the short term for Arabica price.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 213 – 213.5 cents
- Support zone 2: 206-206.5 cents
- Stop Loss: 201 cents
CL SELL DOWN:
- Resistance zone 1: 226 – 226.5 cents
- Resistance zone 2: 230.5-231 cents
- Stop loss: 238 cents
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