Robusta coffee term 03/2023 (LRCH23) was unchanged because yesterday the market was on New Year holiday, the old session closed at 1,799 USD/ton.
Ending the session, the dollar increased slightly by 0.19% to 103.68 in the context that the US market was on holiday for the New Year. The market is still watching the economic information and indicators to be released this week in the US to be able to predict the next actions of the Fed on the pace of interest rate hikes in the new year. Besides, optimism about China’s reopening after three years of strict anti-Covid-19 restrictions has waned as the increasing number of infections has negatively impacted the general commodity and coffee markets. Robusta in particular due to the uncertainty about the country’s economic resilience, which in turn affects commodity prices.
Standard inventories of the ICE London exchange recorded an increase of 64,260 tons as of December 29, 2022. Along with information from the General Statistics Office, Vietnam’s coffee exports in 2022 are estimated at 1.72 million tons, up 10.1% compared to 2021. The above factors have negatively impacted the recovery of coffee prices. Robusta coffee.
According to technical analysis, Robusta price is hovering below the psychological resistance level of 1800 after a series of unsuccessful attempts to conquer the 1900 resistance level. RSI is approaching the 30% average oversold zone at 32.87%, MACD is converging and trending down, so it is expected that in the short term, the downtrend may continue to dominate and the price may decrease. support to retest the 1750-1770 price zone. Limit the bottom-fishing to buy and open a new one when the price trend has not shown any signs of recovery.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1785-1790 USD,
- Support zone 2: 1765-1770 USD,
- Proportional buy, stop loss $1,745.
CL SELL DOWN:
- Resistance level 1: 1810-1815 USD,
- Resistance level 2: 1835-1940 USD,
- Proportional sell, stop loss $1,860.
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