Robusta coffee term 03/2023 (LRCH23) was mixed with New York coffee, increased strongly and recovered, up 53 USD (+2.95 %), closing price at 1,852 USD/ton.
The DXY index surged 0.82% to 104.49 as the US market resumed trading after the New Year holiday. The market is still watching the information on the minutes of the December 2022 meeting and the much-anticipated December Employment Report due to be released this week in order to be able to predict the next actions of the Fed on the future. the battle to bring inflation back to 2% and interest rate hike takes place in the new year. Robusta coffee has a strong rally and recovers largely thanks to technical factors after previous sharp declines.
Standard inventories of the ICE London exchange recorded an increase of 64,260 tons as of December 29, 2022. Along with information from the General Statistics Office, Vietnam’s coffee exports in 2022 are estimated at 1.72 million tons, up 10.1% compared to 2021. The above factors have negatively impacted the recovery of coffee prices. Robusta coffee.
According to technical analysis, the Robusta price yesterday sometimes broke through the 1800 level to the lowest level of 1787, then rebounded strongly because it entered the oversold area. RSI has moved to the average level of 48.51% and MACD is still converging and has not established a trend, so it is expected that in the short term, the price will still struggle in the range of 1820 – 1890. Only when the price rises above MA50 at 1883 and maintained above the psychological resistance level of 1900, the new uptrend is clearly established.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1805-1810 USD,
- Support zone 2: 1760-1765 USD,
- Proportional buy, stop loss 1737 USD.
CL SELL DOWN:
- Resistance level 1: 1875-1880 USD,
- Resistance level 2: 1900-1905 USD,
- Sell proportionally, stop loss 1947 USD.
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