Arabica coffee term 03/2023 (KCEH23) continued to extend the series of consecutive days of decline, down 2.25 cents (-1.40%), the price closed at 158.30 cents/lbs.
The dollar had a strong weekend trading session after falling sharply after the employment and wage data were released at the end of last week, specifically, employers added 223,000 jobs in December. Besides, money workers’ wages rose 0.3% in December, lower than November’s 0.4%, reducing annual wage growth to 4.6% in December from 4.8% in November. The market is now looking forward to the news. about US consumer price data will be released this week, because this information could affect the policy of the US central bank. The DXY index ended the session down 1.17% to 103.88. The Brazilian Real depreciated at 1 USD = 5.2259 BRL. The decrease in the value of the local currency is also a factor restraining the price of Arabica coffee.
Standard inventory of ICE New York floor recorded an increase of 830,272 as of January 6, 2023. In addition, the weather report in the main coffee growing regions in southern Brazil is now very favorable rain to develop a new crop. The above information has put downward pressure on Arabica coffee prices.
According to technical analysis, the RSI is at 39.59% while the MACD has crossed down, so it is expected that in the short term, Arabica price may continue its downtrend, find support at the old support zone 155. It can be considered. open a new open buy position if the price tests the old bottom 150-152. On the contrary, the 170-173 zone is a strong resistance zone of Arabica price in the short term.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 156 – 156.5 cents
- Support zone 2: 153.5 – 154 cents
- Stop Loss: 150.5 cents
CL SELL DOWN:
- Resistance zone 1: 161.5 – 162 cents
- Resistance zone 2: 164.5 – 165 cents
- Stop Loss: 167 cents
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