Arabica coffee term December 2022 (KCEZ22) reversed to gain, increased 6.00 cents (+2.79%), the price closed the old session at 221.10 cents/lbs.
The USD continues to act as a place to attract speculative money in the context of the market waiting for the Fed’s monetary policy meeting on Thursday. The Real rallied against the USD, 1 USD = 5.1720 BRL.
The recovery of Arabica coffee prices was supported by the news that New York-standard coffee inventories continued to decline and hit a 23-year low at 532,448 bags. In addition, the forecast that the output of the next crop year will decline also helps Arabica regain some of the value that was lost in many previous sessions.
According to technical analysis, yesterday’s rally partly stopped the decline of Arabica coffee prices. However, the price needs to rise, recover and sustain above the 225 area to temporarily break the downtrend of the price. Technical indicators are currently showing neutral signals because the market is also waiting for news of the Fed’s operating interest rates. Customers should consider staying out of the market to observe more or buy / sell according to technical milestones with a small proportion because before and after important news, Arabica price often fluctuates in a wide range which is very unpredictable.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 213.5 – 214 cents
- Support zone 2: 209.5-210 cents
- Stop Loss: 206 cents
CL SELL DOWN:
- Resistance zone 1: 225 – 225.5 cents
- Resistance zone 2: 229.5-230 cents
- Stop Loss: 235 cents
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