Arabica coffee term September 2022 (KCEU22) could not maintain the upward momentum, reversed to decrease, down 2.30 cents (-1.05%), closing price at 215.85 cents/lbs.
The news that the ECB raised the euro refinancing interest rate from 0% to 0.5% was expected by the market, so it did not cause any sudden fluctuations in the currency and commodity markets. In general, cash flow is still outside the commodity floor and coffee in particular. The price of coffee on the New York floor had a sharper decline than that of the London floor because the Real had strongly weakened against the USD, 1 USD = 5.49-5.5 BRL. This exchange rate triggers the selling momentum of Brazilian coffee producers.
The decline in Arabica coffee prices was somewhat restrained by the ICE-standard coffee inventory data that continuously set a new bottom to 718.6 thousand bags, the lowest level in the past 23 years.
According to technical analysis, Arabica price is struggling to accumulate within the range of 210-220, looking to retest the MA200 at the price area of 218-222, if successful, it will be a bright signal for Arabica price. All technical indicators are showing neutral signals, the price trend is not clear yet. However, with the absence of speculative cash flow because there is not much positive support information, Arabica price is still in a downtrend in the short term with the near resistance zone at 210-212 and further at 203-205.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 212 – 212.5 cents
- Support zone 2: 208-208.5 cents
- Stop Loss: 203 cents
CL SELL DOWN:
- Resistance zone 1: 220 – 221 cents
- Resistance zone 2: 225.5-226 cents
- Stop Loss: 231 cents
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