Arabica coffee term 03/2023 (KCEH23) reversed to decrease, down 3.85 cents (-2.21%), the price closed the old session at 170.20 cents/lbs.
Arabica prices returned to the previous downtrend despite the decline in the dollar price yesterday. However, the market is still watching the Fed’s monetary policy meeting today to catch the hidden information in the Fed Chairman’s speech as a basis for more predictions for the interest rate increase of the monthly meeting. after. The Brazilian Real continued to increase 1%, 1 USD = 5.1120 BRL. Although this exchange rate is less attractive, in the face of abundant supply of real goods at warehouses + concerns about reduced consumption, producers still sell strongly, causing Arabica prices to decrease.
In the context that the Brazilian weather is still stable and favorable for the new coffee flowering here, there are some estimates that this new crop year, Brazil’s harvest may increase by 10% over the same period.
According to technical analysis, all technical indicators show that bearish momentum is still clear even though RSI has deeply entered the oversold area of 23.82%. It is expected that while the market is waiting for important news, the price will fluctuate up and down in a narrow range while waiting for news and will fluctuate strongly when the information is announced. The near support of the price is at 164-165. Customers carefully monitor more information and maintain a safe cash rate.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 167 – 167.5 cents
- Support zone 2: 165 – 165.5 cents
- Stop Loss: 160 cents
CL SELL DOWN:
- Resistance zone 1: 174.5 – 175 cents
- Resistance zone 2: 179.5-180 cents
- Stop Loss: 183 cents
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