Robusta coffee term 03/2023 (LRCH23) continued its upward momentum, increasing by 35 USD (+1.86%), closing price at 1,916 USD/ton.
Market overview
The DXY index ended the weekend with a slight gain of 0.02% to 102.22 after the previous session fell to the lowest level since June 6, 2022 as the release of US inflation data showed prices were trending. The downward trend persists, increasing expectations that the Fed will not be too aggressive in raising interest rates in the near future, most of the market expects that the Fed will reduce the rate of interest rate increases from 0.5% to 0.25% in the next life. upcoming meeting.
However, the path to bring the US inflation rate to 2% is still very long and the process of raising interest rates is still ongoing, so the market is still actively waiting to watch the released economic indicators. announced in the near future to continue giving his opinion on the next Fed rate hike next month.
The price of Robusta coffee had a mixed movement at the end of the week with the monetary factor when it remained in green despite the USD appreciation.
According to a report by the General Statistics Office of Vietnam, Vietnam’s coffee exports in December 2022 increased by 53.5% over the previous month to 197,077 tons.
In general, in 2022, Vietnam exported 1.78 million tons of coffee, up 13.8% over the previous year. Despite the prospect of abundant supply, the news that China is reopening, causing the increasing demand for goods to gradually recover, also partially supported coffee prices.
Technical Trends
According to technical analysis, the rally and recovery for the second session in a row at the end of last week helped technical signals to signal that the bullish momentum is still stronger.
Robusta price closed the weekend, crossed the MA50 at 1875 and stayed above 1900 so It is expected that in the short term, the price may continue to increase and find the next resistance at the MA100, which is the 1930 level or beyond, the 1950 zone.. Customers should not catch the top to open a new sell position when the uptrend is still strong.
HINTS BUY/SELL STRATEGY IN THE Session (reference)
NEW BUYING CL:
- Support zone 1: 1880-1885 USD,
- Support zone 2: 1850-1855 USD,
- Proportional buy, stop loss $1836.
CL SELL DOWN:
- Resistance level 1: 1930-1935 USD,
- Resistance level 2: 1950-1955 USD,
- Sell ​​proportionally, stop loss 1983 USD.
Today (Monday, January 16, 2023) the Arabica coffee market is on holiday for Martin Luther King.
