Arabica coffee term December 2022 (KCEZ22) reversed to decrease, down 3.00 cents (-1.31%), the price closed the old session at 225.70 cents/lbs.
Data on the number of US jobless claims in September reached 193 thousand, better than predicted and the previous month. However, the USD index adjusted slightly down 0.1% to 112,454 in the context of other G7 foreign currencies increasing against the USD. Real fell slightly, currently trading around 1 USD = 5.3930 BRL. This exchange rate stimulates producers to boost sales to get more local currency, so the price of Arabica is under pressure to decrease.
The Somar Met meteorological agency reported on Monday that Minas Gerais had 28.3 mm of rain last week, or 132% of the historical average. This is a key Arabica coffee growing area, accounting for about 30% of Brazil’s Arabica production.
According to technical analysis, the technical indicators are showing neutral signal. It is expected that the price will still struggle to accumulate in the 215-235 range in the short term. Coffee prices in general recently were mainly influenced by the strength of the USD. In the context that the market is still concerned about the health of the global economy, the USD is still considered an ideal haven, so the uptrend of the USD against a basket of currencies and commodities has not ended. Customers need to observe more and trade at technical levels, limit buying and selling to chase prices.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 222 – 222.5 cents
- Support zone 2: 217-217.5 cents
- Stop Loss: 214 cents
CL SELL DOWN:
- Resistance zone 1: 232 – 232.5 cents
- Resistance zone 2: 235-235.5 cents
- Stop Loss: 241 cents
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