Arabica coffee term T12/2022 (KCEZ22) extended a series of continuous decline days, down 4.60 cents (-2.42%), the price closed the old session at 185.80 cents/lbs.
The global currency market received a lot of news this week: the meeting of the Central Banks of Canada and the EU (expected interest rates in both currencies to continue to increase by 0.75%) and the business results of companies. large US. The dollar adjusted down 0.83% to 110.93 when the data on US consumer spending was not very positive. The Brazilian Real continued to fall, 1 USD = 5,3160 BRL. This exchange rate contributed to the price of Arabica being sold off more sharply than coffee on the London floor.
Inventories of coffee meeting New York floor standards as of October 24 decreased, reaching 23,341 tons. Information predicting an upcoming bumper crop of Brazil thanks to favorable rainy and windy weather at the beginning of the season continues to be the factor that restrains the recovery of Arabica coffee prices. Of course, it is not excluded that this is just an excuse of speculators to force prices down.
According to technical analysis, Arabica price is at a 20-month low and technical indicators showing bearish momentum are still present and may continue to probe the support zone 180-181 if there is still no information. Which positive support for coffee prices. However, it is not possible to rule out the possibility that a technical recovery will soon occur because the price has entered the oversold area quite deeply. Customers need to keep a safe proportion of cash and when there is an upward correction, it is an opportunity to reduce the unfavorable LONG position.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 182.5 – 183 cents
- Support zone 2: 180 – 180.5 cents
- Stop Loss: 177 cents
CL SELL DOWN:
- Resistance zone 1: 191.5 – 192 cents
- Resistance zone 2: 195.5-196 cents
- Stop Loss: 201 cents
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