Robusta coffee term January 2023 (LRCF23) reversed to decrease, down 20 USD (-1.09%), closing price at 1,814 USD/ton.
The DXY Index continued its strong decline, down 1.01% to 106.04 in the context that the minutes of the FED’s November meeting were released providing more data to reinforce the market’s view that the Fed will slow down the pace of interest rate hikes. to 0.5% at the meeting next month because the current rate of interest rate increase of the FED is considered to be very fast compared to other major central banks and as a result, the US economy shows signs of slowing down. G7 foreign currencies gained and recovered against the USD, commodities had different increases and decreases, in which coffee on both exchanges was dyed red by information on supply and demand.
According to the General Department of Vietnam Customs, Vietnam’s coffee harvest has been completed 38%, 30% higher than the 5-year average, Vietnam’s coffee exports in the first half of November reached more than 55,000 tons. , up 42.26% over the same period, accumulated coffee exports in the first 10.5 months of the year reached 1,486 tons, up 12.17% over the same period last year. Abundant supply data in Vietnam put downward pressure on Robusta coffee prices.
According to technical analysis, Robusta price yesterday sometimes rose to test the resistance area of 1860 (MA20) and reversed to the end of the session, closing at 1814 below MA10, which is a bad signal for Robusta price. The technical indicators are showing neutral signal that the price trend is not yet clear. It is expected that in the short term, the price is still struggling to accumulate within the range of 1790 – 1860.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1785-1790 USD,
- Support zone 2: 1760-1765 USD,
- Proportional buy, stop loss $1730.
CL SELL DOWN:
- Resistance level 1: 1850-1855 USD,
- Resistance level 2: 1880-1885 USD,
- Sell proportionally, stop loss $1910.
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