Overview of Arabica coffee market (August 26, 2022)

Arabica coffee term 12/2022 (KCEZ22) continued its strong upward momentum, up 10.75 cents (+4.71%), closing price at 239.00 cents/lbs.

The USD is still in an uptrend against a basket of currencies and commodities in the context of the market betting on the Fed’s interest rate hike in the September executive meeting. The dollar rose, but the prices of most commodities still maintained an uptrend, not excluding coffee on both exchanges. Real is currently trading around 1 USD = 5.09 – 5.11 BRL.

Weather information continues to be the catalyst for the price of Arabica coffee to explode. Accordingly, both producers and investors are concerned that prolonged dry weather may adversely affect the output for next year’s crop of Brazilian coffee, especially when the following crop falls in the fall. coffee 2 year 1 cycle.

According to technical analysis, so with the strong increase in the session yesterday, Arabica price has continuously surpassed the resistance levels and headed straight to the block 240, further to the resistance level of 245 and the peak price area in 6 months. passed at 253. Hard to say Arabica can still maintain a straight uptrend to the above resistance levels although MACD shows that bullish momentum is still there and the price has just reached the level of the 70% RSI. Do not increase positions in this period, prioritize high cash proportion and wait for a downward correction to exit previous unfavorable buying positions.

HINTS BUY/SELL STRATEGY IN THE Session (refer).

NEW BUYING CL:

• Support zone 1: 230 – 230.5 cents
• Support zone 2: 223.5-224 cents
• Stop Loss: 220 cents

CL SELL DOWN:

• Resistance zone 1: 243.5 – 244 cents
• Resistance zone 2: 247.5-248 cents
• Stop Loss: 255 cents

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