Robusta coffee term January 2023 (LRCF23) could not maintain its uptrend before the interest rate news, fell by 14 USD (-0.76%), closing price at 1,839 USD/ton.
The dollar had a correction session down 0.3% to 111.23 when the market expected that in today’s monetary policy meeting, the FED Chairman will make a move to reduce the rate of interest rate increase in the December meeting. However, with data Whether US jobs are still quite positive, the FED still has momentum to keep the current rate of interest rate hike at 0.75%. The percentage of people predicting a rate increase next month to 0.5% has decreased from 70% to 57%. Coffee on both bourses was once again unaffected by the strength of the USD when it returned to be sold due to abundant supply pressure.
According to the General Statistics Office of Vietnam, accumulated coffee exports in the first 10 months of crop year 2022 reached about 1.4 million tons, up 10.6% over the same period last year. In addition, exports of Robusta coffee from the Indonesian island of Sumatra in September also increased sharply by 136% over the same period last year, accumulated in the first 6 months of the crop year reached 2,357 million bags, up 59.33% over the same period last year.
According to technical analysis, all technical indicators show that bearish momentum is still clear even though RSI has deeply entered the oversold zone of 19.05%. It is expected that before the news release, the price will fluctuate unpredictably or struggle within a narrow range, waiting for information. The near support of the price is 1800-1810, whereas the near resistance is 1900-1920.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1820-1825 USD,
- Support zone 2: 1805-1810 USD,
- Proportional buy, stop loss $1,780.
CL SELL DOWN:
- Resistance level 1: 1860-1865 USD,
- Resistance level 2: 1880-1885 USD,
- Sell proportionally, stop loss $1910.
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