Arabica coffee term 03/2023 (KCEH23) had a strong reversal session, up 6.75 cents (+3.97%), closing price of the old session at 176.95 cents/lbs.
So as the market had predicted, the Fed’s move to raise interest rates by 0.75% last night did not surprise people. However, the half-general statement of the FED chairman still makes it difficult for the market to grasp the next move of the FED next month, whether to continue this interest rate increase or reduce the rate of increase or not. The Brazilian Real fell slightly, 1 USD = 5.1430 BRL.
The price of Arabica coffee was supported by a strong increase, although the USD also increased partly because the export of Arabica in Central America, in particular Honduras and Costa Rica, both decreased sharply. Although these two countries do not account for much export volume, the quality of coffee here is very popular in the market
According to technical analysis, the technical indicators showing temporary bearish trend signal have been terminated when the RSI has exited the oversold zone, currently at 33.44%, and the MACD is also about to converge. In general, the short-term trend in the immediate future will be bullish, recovering and finding resistance. However, it is only when the price rises above 190 that it actually reactivates the uptrend.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 172 – 172.5 cents
- Support zone 2: 168 – 168.5 cents
- Stop Loss: 165 cents
CL SELL DOWN:
- Resistance zone 1: 179.5 – 180 cents
- Resistance zone 2: 182.5-183 cents
- Stop Loss: 188 cents
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