Sugar Futures observed a decrease in its price on Thursday, therefore the price of the Futures fell below $13.00 in pursuit of some major economic news releases. As far as technical bias is concerned, it is anticipated that it may turn bearish since the price of the sugar futures printed a higher low in the recent rally which moved downside.
Sugar Futures Technical Analysis
As of January 31, 2019, the futures are being traded near $12.51. Since the price is decreasing, a trend line support level can be seen around $12.17, ahead of $11.48, the 61.8% Fib level support and then comes $9.80, the low of September 27, 2018, as demonstrated in the given below chart.
On the upside, A resistance level may come around $13.08, the trend line resistance. The price of the sugar futures may also come across another resistance level around $13.17, the 23.6% Fib level resistance and then a key horizontal resistance level is likely to resist the price of the futures around $14.20, the major horizontal resistance level as demonstrated in the given above chart. The technical bias is expected to remain bearish as long as $13.17, the major horizontal resistance level remains intact.
USD Building Permits News
In the US, the figure concerning permits issued for construction of buildings remained 1.241 Million in September, as compared to 1.249 Million during the month before, down beating the economist expectation which was 1.280 Million. The data is taken from the news released by the Census Bureau and the Department of Commerce, the United States.
The figure represents the number of permits issued for the construction of upcoming projects. It indicates the movement in the investment level of the corporate sector causing some volatility in the US Dollar (USD) market. Generally speaking, the more permits issued during the due course of time the better it is for the US economy and therefore show a bullish trend for the US Dollar (USD) and vice versa.
Considering the overall price trend over the last few days, selling sugar futures near current levels may turn out to be a good decision over a short to medium term.