Robusta coffee term 03/2023 (LRCH23) continued to maintain its upward momentum, increasing by 11 USD (+0.59%), closing price at 1,879 USD/ton.
The dollar rallied as the US Treasury yield curve rebounded after US existing home sales data fell 7.7% to a 2.5-year low. Besides, thanks to the market’s expectation that inflation will cool down, the US consumer confidence index in December increased to 108.3 from 101.4 previously, positively supported the USD price. Although the USD appreciated, thanks to the news that global coffee exports fell, coffee prices on both exchanges benefited from the weakening USD. Ending the session, the DXY index rose 0.25% to 104,232.
According to the International Coffee Organization’s (ICO) November Trade report, global coffee exports in the first month of the current coffee year 2022/2023 fell by 1.9% year-on-year. before, only reached 6.96 million bags. Within 12 months, ending in October 2022, Robusta coffee exports increased by 2.48% over the same period last year.
According to technical analysis, the technical indicators are showing neutral signals, the price trend has not been established clearly in the short term. It is expected that Robusta price will still struggle to accumulate before finding an upward direction to the 1890-1900 price area (MA50) which is a strong resistance area of Robusta coffee price. On the contrary, 1820 – 1830 is a close support area for Robusta price.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1860-1865 USD,
- Support zone 2: 1850-1855 USD,
- Proportional buy, stop loss 1845 USD.
CL SELL DOWN:
- Resistance level 1: 1885-1890 USD,
- Resistance level 2: 1895-1900 USD,
- Sell proportionally, stop loss $1910.
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