Arabica coffee term 03/2023 (KCEH23) continued the series of consecutive days of decline, down 7.15 cents (-4.52%), closing price at 150.90 cents/lbs.
The dollar had a quiet session after Fed Chairman Jorome Powell did not mention a rate increase in his speech and did not comment on the Fed’s monetary policy at the central bank conference. in Sweden. Currently, the market is ready to receive information on the Consumer Price Index (CPI), thereby making comments and predictions for the upcoming US interest rate hike. The DXY index ended the session slightly up 0.097% to 103.27. The Brazilian Real fell at 1 USD = 5.1999 BRL. The decrease in the value of the local currency is also a factor that restrains the price of Arabica coffee.
Standard inventories of the New York ICE floor continued to increase. Besides, the weather report in the main coffee growing regions in Brazil is currently raining very favorable to develop a new crop. The above information has put downward pressure on Arabica coffee prices.
According to technical analysis, the 8th consecutive falling price of Arabica has RSI moved to the oversold area at 31.43%. However, the downtrend is still dominant as the MACD is still diverging downwards, so it is expected that in the short term Arabica price can continue the downtrend and find the latest support when the 150 hard support level has been broken. broken. The next support area of Arabica price is at 143 – 145. It is not excluded that the price may correct down slightly and then meet the buying and bottom-fishing force for a technical recovery with the resistance area near 158 – 160. Any rally will recover. Any recovery is an opportunity for customers to get rid of their buying position at an unfavorable low price.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 147 – 147.5 cents
- Support zone 2: 143.5 – 144 cents
- Stop Loss: 138 cents
CL SELL DOWN:
- Resistance zone 1: 156 – 156.5 cents
- Resistance zone 2: 161.5 – 162 cents
- Stop Loss: 165 cents
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