Robusta coffee term September 2022 (LRCU22) continued its upward momentum and successfully tested the 2000 price, up 35 USD (+1.77%), the price closed at 2009 USD/ton.
Thus, the FED officially raised interest rates by 0.75% as the market had recently predicted, bringing the total increase in interest rates in the past 2 months to 1.5%, the highest increase in 4 decades. However, Chairman Powell said that the Fed may slow down rate hikes after assessing the impact of the monetary policy process on inflation and the economy. US stocks rebounded and the dollar fell after this statement, cash flow returned to the commodity market in general, coffee prices on both exchanges benefited.
Robusta coffee prices closed the session before the announcement of the Fed interest rate. But before that, thanks to the monetary factor, the Robusta price rose cautiously and ended the session maintaining above the psychological level of 2000 which is a good sign. Today’s opening session the market will react to the interest rate information last night.
According to technical analysis, the 1H frame and daily MACD are converging upwards, showing that the bullish momentum is still there. However, 1H RSI is approaching the overbought zone, it is necessary to note a technical downward correction before maintaining a new uptrend stably. The near resistance at the 50&200 MA at 2025-2040 plays a pivotal role for the new mid-term uptrend. Conversely, a return to the 196x-197x zone could reactivate the downtrend.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1980-1985 USD
- Support zone 2: 1950-1955 USD
- Proportional buy, stop loss 1935 USD
CL SELL DOWN:
- Resistance level 1: 2020-2025 USD
- Resistance 2: 2040-2045 USD
- Proportional sell, stop loss 2070 USD
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