Arabica coffee term December 2022 (KCEZ22) had a strong decline due to both monetary and supply factors, down 8.10 cents (-3.72%), closing price of the old session at 209.75 cents/lbs.
The USD index rose 0.21% to 113.454 on better-than-expected US PPI manufacturing data and up 0.4% month-on-month. Besides, the market is still waiting for US CPI data to be released this evening. In general, the dollar continued to increase in value as investors sought shelter for fear of a global recession as major central banks continuously raised interest rates in the fight against inflation. Real fell slightly, currently trading around 1 USD = 5.2935 BRL.
In addition to the monetary impact, Arabica reacted to a stronger decrease in amplitude than London floor coffee because Brazil’s Arabica coffee exports in September increased by 18% while Robusta decreased by 62.2%. Both producers and investors are still observing the situation of hail in the coffee growing region of Minas Gerais Brazil.
According to technical analysis, yesterday’s strong downward correction triggered the short-term downtrend. All technical indicators are showing signs of bearish momentum. It is expected that today session when US CPI is announced, the price will fluctuate strongly with a very wide range with the support level at 198-200. In the opposite direction, the price needs to test and maintain above the 223-225 zone. just stopped the selling momentum of the sellers.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 206 – 206.5 cents
- Support zone 2: 202.5 – 203 cents
- Stop Loss: 197 cents
CL SELL DOWN:
- Resistance zone 1: 216.5 – 217 cents
- Resistance zone 2: 222.5-223 cents
- Stop Loss: 226 cents
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