Arabica coffee term 12/2022 (KCEZ22) reversed to increase, increased by 0.40 cents (+0.18%), the price closed the old session at 217.85 cents/lbs.
The USD index edged up 0.1% to 113.19 as the market waited for the US CPI data to be released this week. Some predict that this month’s CPI may be at 8.1%, a slight decrease from 8.3% compared to the previous month. However, the fight against inflation of the world’s economic locomotive will still be prolonged and the most difficult thing is to ensure that there is no economic recession. Real fell slightly, currently trading around 1 USD = 5.2935 BRL.
As of Tuesday, October 11th, ICE New York-standard coffee inventories fell to a 23-year low at 416,399 bags and showed no sign of stopping for at least the next month. This information + the position of Arabica coffee that was sold in many previous sessions supported the price of Arabica coffee to regain its green color although the monetary factor was not positive.
According to technical analysis, all technical indicators are showing neutral signals, the price trend is not clear, the price is in the convergence zone of the MA lines. It is expected that the price will still struggle to accumulate at 210-225 until there is new information to help determine the price trend. In the period of waiting for news, customers should consider standing outside and observing, giving priority to keeping the proportion of cash and can reduce their position if there is a correction in favor of their open position.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 214.5 – 215 cents
- Support zone 2: 212.5 – 213 cents
- Stop Loss: 210 cents
CL SELL DOWN:
- Resistance zone 1: 221 – 221.5 cents
- Resistance zone 2: 223.5-224 cents
- Stop Loss: 228 cents
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