Robusta coffee term 03/2023 (LRCH23) reversed to increase, increasing by 10 USD (+0.54%), closing price at 1,868 USD/ton.
The DXY index rose sharply from the beginning of the year to September, gaining nearly 19%, then cooled down to only 9% up to now. Besides, US inflation seems to have passed its peak and has gradually weakened, leading investors to believe that the US central bank can continue to reduce the rate of interest rate hikes early next year, leading to to the US dollar’s plunge against major currencies. Coffee prices on both exchanges benefited from the weakening USD.
Inventories of coffee meeting standards on the ICE London floor as of December 19 decreased by 8,820 tons, equivalent to 11.84% compared to the previous week and recorded a 7-week-long series of declines, contributing to the recovery of prices. Robusta coffee.
According to technical analysis, the technical indicators are showing neutral signals, the price trend has not been established clearly in the short term. It is expected that Robusta price will still struggle to accumulate before finding an upward direction to the 1890-1900 price area (MA50) which is a strong resistance area of Robusta coffee price. On the contrary, 1820 – 1830 is a close support area for Robusta price.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1850-1855 USD,
- Support zone 2: 1840-1845 USD,
- Proportional buy, stop loss $1830.
CL SELL DOWN:
- Resistance level 1: 1875-1880 USD,
- Resistance level 2: 1885-1890 USD,
- Sell proportionally, stop loss 1900 USD.
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