Arabica coffee term 12/2022 (KCEZ22) had a downward correction at the end of the week, down 1.30 cents (-0.60%), closing price of the old session at 215.10 cents/lbs.
The USD continues to act as a place to attract speculative money in the context of the market waiting for the Fed’s monetary policy meeting on Thursday. The Real fell slightly by 0.40% against the USD, 1 USD = 5.2600 BRL. This exchange rate supports producers to boost sales, putting downward pressure on Arabica coffee prices.
Forecasts of rains next week in Brazil’s coffee growing regions help support Arabica coffee prices. In addition, Arabica is standing before the final harvest of Brazil. According to the Green Coffee Association, green coffee inventories in the United States increased by 3.6% to 6.45 million bags, putting pressure on Arabica coffee prices.
According to technical analysis, the technical indicators are showing signs that the price still has bearish momentum. The next support zone the price can test is 208-210 or the worse scenario is that the price can return to the technical and psychological support at 200-203. Currently, there is still no signal of a recovering correction, so customers should limit catching new buying bottoms when the price is still in a downtrend. The price needs to increase, recover and maintain above the 225 zone to temporarily break the downtrend of the price.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 212 – 212.5 cents
- Support zone 2: 209.5-210 cents
- Stop Loss: 206 cents
CL SELL DOWN:
- Resistance zone 1: 217.5 – 218 cents
- Resistance zone 2: 222-222.5 cents
- Stop Loss: 227 cents
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