Robusta coffee term 03/2023 (LRCH23) had a bearish session after the Christmas holidays, down 6 USD (-0.32%), closing price at 1,869 USD/ton.
Market overview
The DXY index fell 0.211% to 103.980 amid erratic dollar volatility as Treasury yields rose and investors expected China’s growth to recover as Covid-19 containment measures were eased. liquid. However, the market is still concerned about the US economy will slow down as the Fed chair has emphasized that monetary policy tightening will be prolonged with interest rates at the end of the period will be higher than market expectations. guess in the previous speech. The price of Robusta coffee decreased slightly to adjust to the price increase of Arabica coffee.
Standard inventories of ICE London floor continued to decrease. In addition, the information that China is gradually easing measures to prevent the Covid-19 epidemic has raised hopes that coffee consumption will increase again in this billion-people country. This factor has restrained the price of Robusta coffee.
Technical Trends
According to technical analysis, Robusta price struggled to accumulate in the 1860-1890 zone for many consecutive sessions, the technical indicators are also showing neutral signals with the cumulative sideways trend still dominating.
It is expected that in the short term, the price will still fluctuate in the 1850 – 1900 range, breaking out of the technical resistance level and the new attractive price of Robusta at 1900 stimulates the buyers to buy strongly. However, the market is still in the New Year holiday, so it is not expected that there will be any clear changes during this time.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1850-1855 USD,
- Support zone 2: 1830-1835 USD,
- Proportional buy, stop loss $1816.
CL SELL DOWN:
- Resistance level 1: 1885-1890 USD,
- Resistance 2: 1905-1910 USD,
- Proportional sell, stop loss $1924.
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