Arabica coffee term 12/2022 (KCEZ22) was mixed with coffee on London floor, continuing to increase in price, up 0.55 cents (+0.25%), closing price of the old session at 224.35 cents/lbs.
The USD has a slight downward adjustment after many consecutive hot sessions, the prices of some agricultural products also have the opportunity to increase and recover, including Arabica coffee. The Real decreased slightly by 0.03% against the USD, 1 USD = 5.3780 BRL. This exchange rate will theoretically trigger a strong selling force, putting downward pressure on Arabica coffee prices. However, the price of Arabica coffee is still supported by the inventory data, so it still maintains the green color.
Inventories of coffee meeting New York floor standards as of September 27 continued to decrease at 448,775 bags. Both producers and investors are continuing to monitor rainfall in Brazil’s coffee growing regions this week with good and favorable rainfall forecasts.
According to technical analysis, the technical indicators are showing neutral signals, it is expected that the price will still struggle in the 215-235 range in the short term. Absence of supporting basic information, so the price of Arabica coffee is ambiguous according to the strength of the USD and accumulates sideways.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 217 – 217.5 cents
- Support zone 2: 211.5-212 cents
- Stop Loss: 208 cents
CL SELL DOWN:
- Resistance zone 1: 230.5 – 231 cents
- Resistance zone 2: 238-238.5 cents
- Stop Loss: 242 cents
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