Robusta coffee term 03/2023 (LRCH23) red color continued to dye both coffee floors, down 29 USD (-1.58%), closing price at 1,811 USD/ton.
The DXY Index fell 0.68% to 103.18 amid little market volatility as traders awaited information on the US Consumer Price Index (CPI) to be released later today, which is expected to help they have clearer and more specific predictions about the rate of interest rate increase of the US in the coming time. Currently, most markets are leaning towards the possibility that the Fed will raise 0.25% for the upcoming rate hike. Most of the G7 foreign currencies appreciated against the USD. Commodities had an increase and decrease as most items increased in price against the USD, but the price of coffee on both floors decreased due to pressure from the forecast of abundant supply.
According to coffee importer Wolthers Douque, Brazil’s coffee crop 2022/2023 will increase 16% to 65 million bags year-on-year due to improved weather conditions. This factor has had a negative impact on the price of Robusta coffee.
According to technical analysis, yesterday’s drop tested the 1800 level to the lowest level of 1788 and then recovered slightly at the end of the session. MACD has converged down so the downtrend is still dominant. It is expected that in the short term, Robusta price may continue to decrease and support the level of 1800 and beyond the old bottom area of 1750-1760. On the contrary, 1840 – 1850 is the close resistance zone of Robusta price. Customers should consider reducing the unfavorable buying position if there is an uptrend and a technical recovery to the upper resistance zone.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1780-1785 USD,
- Support zone 2: 1750-1755 USD,
- Proportional buy, stop loss 1714 USD.
CL SELL DOWN:
- Resistance level 1: 1845-1850 USD,
- Resistance level 2: 1880-1885 USD,
- Sell proportionally, stop loss $1915.
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