Arabica coffee term 03/2023 (KCEH23) dyed red on both coffee floors, down 3.50 cents (-2.02%), closing price at 170.05 cents/lbs.
News of first-time jobless claims showing a cooling US labor market eased market worries about stronger Fed rate hikes next year. The jobs data also sent 10-year US Treasury yields lower. In addition, the market is trading weakly due to the Christmas and New Year holidays. All of the above information has led to the weakening of the USD. Arabica coffee prices had a downward adjustment session after the previous price increase. The Brazilian Real is trading around 1 USD = 5.2865 BRL
Standard inventories of the ICE New York floor continued to increase at 797,755 bags as of December 28. This factor puts downward pressure on Arabica coffee prices.
According to technical analysis, yesterday’s price drop made Arabica’s price move away from MA50 but still remained above MA10 and MA20. MACD shows bullish momentum signal still present. It is expected that in the short term, Arabica price may continue to struggle to find resistance with the next target at 179-180, on the contrary, 162-164 is the near support area of the price.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 168 – 168.5 cents
- Support zone 2: 166.5 – 167 cents
- Stop Loss: 164 cents
CL SELL DOWN:
- Resistance zone 1: 172.5 – 173 cents
- Resistance zone 2: 175 – 175.5 cents
- Stop Loss: 176.5 cents
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