Robusta coffee term 03/2023 (LRCH23) had a strong session to drop to the lowest level in the past 1 month, down 45 USD (-2.41%), closing price at 1,824 USD/ton.
The dollar ended slightly lower as jobless claims data showed a cooling US labor market for the first time, easing worries about more severe rate hikes by the Fed next year. The news that China will ease Covid-19 epidemic prevention measures, an important step in reopening borders even as Covid-19 infections continue to increase, has caused the dollar to continue to decline. Not benefiting from the monetary factor, the standard inventory of ICE London floor recorded a sudden increase, causing the price of Robusta coffee to decrease.
Information from the General Statistics Office said that Vietnam’s coffee exports for the whole year of 2022 are estimated at 1.72 million tons, up 10.1% compared to 2021. This information has put downward pressure on Robusta coffee prices.
According to technical analysis, yesterday’s strong drop pulled the price of Robusta coffee below MA10 and MA20, which is a negative signal for the price trend. Technical signals still give neutral price signal, but MACD is converging and has a downward trend, so it does not rule out the possibility that in the short term, the price will continue to struggle and correct to find support in the 1820 range – 1890. However, the market is still in the New Year holiday, so it is not expected that there will be any significant changes during this time.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1800-1805 USD,
- Support zone 2: 1780-1785 USD,
- Proportional buy, stop loss $1,747.
CL SELL DOWN:
- Resistance level 1: 1860-1865 USD,
- Resistance level 2: 1895-1900 USD,
- Sell proportionally, stop loss 1918 USD.
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