Arabica coffee term 03/2023 (KCEH23) had a good correction, increased by 6.30 cents (+3.76%), the price closed the old session at 174.05 cents/lbs.
Finally, there has been an upward correction and recovery of Arabica prices when Arabica prices have remained in the oversold area for a long time, and prices have fallen too low, which has attracted investors to balance their previous net selling status. This increase was despite the USD appreciation yesterday. However, the market is still watching the Fed’s monetary policy meeting today and tomorrow. The Brazilian Real rose quite well, 1 USD = 5.1800 BRL. This exchange rate is less attractive, so it has limited the momentum of producers to sell off, in favor of Arabica prices.
According to the International Coffee Organization ICO, global coffee exports reached 9.95 million bags, down 3.02% from the previous month and 12 months accumulated 129 million bags, down 0.4% over the same period last year, of which exports Arabica exports reached 80.63 million bags, down 2.33% over the same period. The weather situation in Brazil is still stable and favorable for the new flowering of coffee here.
According to technical analysis, the technical indicators showing bearish momentum are still present but have weakened. RSI has increased to 25.44% but is still in the oversold zone (below the 30% line), MACD tends to reverse if the price continues to gain momentum today and retests MA10 at 179.50. It is expected that this upward correction will still be maintained in the short term but the price is still in the selling trend. While the market is waiting for important news, the price will fluctuate up and down in a wide range, customers should carefully monitor and maintain the safe cash ratio.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 170 – 170.5 cents
- Support zone 2: 167 – 167.5 cents
- Stop Loss: 165 cents
CL SELL DOWN:
- Resistance zone 1: 178.5 – 179 cents
- Resistance zone 2: 181.5-182 cents
- Stop Loss: 188 cents
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