Arabica coffee term September 2022 (KCEU22) continued the upward trend, up 0.90 cents (+0.42%), closing price at 212.75 cents/lbs.
The price of Arabica coffee yesterday was supported by both monetary factors and information on supply and demand and weather. The dollar had a downward correction in the context of the market waiting for US CPI data to be released today to assess US inflation as well as predict the upcoming Fed interest rate policy. Real is still trading around 1 USD = 5.1250 BRL. This rate supports the price increase of Arabica.
Inventories of ICE-qualified coffee continued to decrease, reaching 610,159 thousand bags on August 9. In addition, Arabica coffee prices continue to be supported by dry information in the Minas Gerais region, Brazil, which has not received any rain for the past week, raising concerns about drought leading to frost. The market is continuing to closely observe the Brazilian weather situation at this stage.
According to technical analysis, MACD and RSI are showing neutral signals, it is expected that the price will continue to move sideways and struggle at the 200-225 price range. The support area for safe new buying is 203-205, whereas the recent recovery sessions Arabica has not yet surpassed the 225-230 zone, which can open a sell position with a small proportion in that price range.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 207 – 207.5 cents
- Support zone 2: 203.5-204 cents
- Stop Loss: 198 cents
CL SELL DOWN:
- Resistance zone 1: 218 – 218.5 cents
- Resistance zone 2: 224-224.5 cents
- Stop Loss: 228 cents
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