Robusta coffee term T11/2022 (LRCX22) struggled in a narrow range, down slightly by 1 usd (-0.04%), the price closed at 2263 USD/ton.
As the previous report reported, while the market was waiting for the US CPI announcement tonight, the USD continued to have a downward correction. Closing the session yesterday, the dollar fell 0.5% to 108.16, a 2-week low after establishing a peak price of 110.79 last week. The dollar weakened, however, coffee prices on both bourses still struggled to correct a slight decrease when speculative money temporarily poured into gold and US stocks.
Inventories of coffee meeting London floor standards continuously recorded a decrease. According to the General Department of Vietnam Customs, Vietnam’s coffee exports in August decreased by 1.2%. However, the cumulative export of the first 8 months of the year increased by 15.31%, this information has restrained the price of Robusta coffee.
According to technical analysis, Robusta price has moved sideways and accumulated in recent sessions while waiting for US CPI information to be announced.
Technical indicators are still showing neutral signals, so it is expected that in the short term, the price will still fluctuate in the range of 2200-2360.
Breaking the support zone 2180-2200 can trigger a strong drop to the 2140-2150 zone. Conversely, if the price increases and sustains above the 2300-2320 area, it can create momentum for the price to retest the old resistance area of 2350-2360.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2240-2245 USD,
- Support zone 2: 2220-2225 USD,
- Proportional buy, stop loss $2,190.
CL SELL DOWN:
- Resistance level 1: 2290-2295 USD,
- Resistance level 2: $2310-2315,
- Proportional sell, stop loss $2340.
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