Robusta coffee term 03/2023 (LRCH23) reversed to decrease slightly, down 1 USD (-0.05%), closing price at 1,878 USD/ton.
The dollar continued its recovery rally, boosted by the release of US economic data that showed a smaller-than-expected increase in new jobless claims last week and the economy. In the third quarter of 2022, the economy recovered faster than estimated, so it is likely that the Fed will be more confident in the fight against inflation. Coffee prices on the London floor decreased slightly due to the impact of the rising USD.
According to a report by the US Department of Agriculture (USDA), global coffee production is estimated to increase by 6.6 million bags to 172.8 million bags in the 2022/2023 crop year, with consumption just 800,000 bags higher than 167.9. million bags of the previous crop year. In addition, USDA forecasts that the Brazilian Robusta coffee harvest will continue to expand to reach a record of 22.8 million bags, an increase of 1.1 million bags. The above information has negatively impacted the price of 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: 1860-1865 USD,
- Support zone 2: 1850-1855 USD,
- Proportional buy, stop loss 1840 USD.
CL SELL DOWN:
- Resistance level 1: 1885-1890 USD,
- Resistance level 2: 1895-1900 USD,
- Sell proportionally, stop loss $1910.
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