Robusta coffee term T11/2022 (LRCX22) decreased slightly before the announcement of the Fed’s interest rate, down 10 USD (-0.45%), closing price at 2,226 USD/ton.
The price of Robusta coffee yesterday closed the session before the Fed interest rate information was announced. Therefore, the price in the margin also fluctuated in the range and decreased slightly under the upward pressure of the USD. And as the market expected, the Fed officially raised interest rates by 0.75% to a range of 3-3.25%. The Fed also thinks that their monetary policy will raise interest rates to 4.4% by the end of this year, and 4.6% in 2023, and that the rate reduction will likely have to last until 2024. This is what it did. The dollar bounced sharply to a 20-year record at 111.63.
Inventories of coffee meeting London floor standards as of September 19 recorded an increase, reaching 93,580 tons.
According to technical analysis, the RSI is at an average of 51.86% but the MACD showing bearish signal is still clear. Cautious at the beginning of the session, the price might drop sharply in response to the news of the Fed’s interest rate increase yesterday when the price of Robusta coffee closed before the information was announced. 2120-2130 is the next strong support zone of Robusta price.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2200-2205 USD,
- Support zone 2: 2170-2175 USD,
- Proportional buy, stop loss $2150.
CL SELL DOWN:
- Resistance 1: 2245-2250 USD,
- Resistance level 2: $2270-2275,
- Sell proportionally, stop loss $2300.
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