Robusta coffee term T11/2022 (LRCX22) maintained a cautious slight increase, increasing by 8 USD (+0.37%), closing price at 2,166 USD/ton.
The market traded quiet while waiting for the US CPI data that is the main measure of US inflation to be released this week. Normally, before the news, the USD will be a haven for money flow, continuing to increase in price against a basket of currencies and commodities. Contrary to other commodities, which all fell due to the strength of the USD, the price of coffee on both bourses remained green because of the information on supply, inventory and the balance of business positions of the two bourses. hedge fund.
The inventory report at the beginning of the week also said that coffee inventories meeting London floor standards decreased slightly. In addition, the British central bank BOE said that it would continue to intervene in the money market, causing the money flow to slow down in risky assets such as coffee on the London floor.
According to technical analysis, although the increase is not much, but the last 3 sessions of Robusta coffee prices all ended in the green, so the price decline has somewhat slowed down, but there is still no certainty that the uptrend has been established. It is expected that before US inflation data is released, prices will still struggle in a narrow range in the area of 2130-2200. If a good rally sustains above the 2200 support level, it could trigger strong buying again.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2140-2145 USD,
- Support zone 2: 2125-2130 USD,
- Proportional buy, stop loss $2110.
CL SELL DOWN:
- Resistance level 1: 2185-2190 USD,
- Resistance 2: 2200-2205 USD,
- Proportional sell, stop loss $2225.
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