Coffee Futures plunged down on Wednesday, therefore the price of the Futures fell below $105.00 in pursuit of some major economic news releases. As far as technical bias is concerned, it is anticipated that it may remain bullish since the price of the coffee futures printed a lower high in the recent rally which moved downside.
Coffee Futures Technical Analysis
As of February 06, 2019, the futures are being traded near $104.5, since the price is decreasing, a support can be seen around $101.7, an immediate trend line support. The price of the coffee futures may also come across another support around $100.0, the psychological number and then a major horizontal support level is likely to keep the price of the futures to stick around $98.4, as demonstrated in the given below chart.
Coming towards the upside, an immediate horizontal resistance level may be seen around $108.06, the 61.8% Fib level resistance level ahead 112.00, the psychological number and then $114.9, the major horizontal resistance as demonstrated in the given above chart. The technical bias is expected to remain bearish as long as $101.0 the trend line support level remains intact.
The United States Michigan Consumer Sentiment Index News
In the United States, the figure concerning the index price of Michigan Consumer Sentiment remained 99.0 in October, as compared to 100.1 during the month before, up beating the economist expectation which was 100.4 The data is sourced from the news released by the University of Michigan, United States.
The figure represents the level of confidence of consumers concerning their willingness to spend money. Generally speaking a high reading in this regard is taken as a bullish trend for the US Dollar whereas a low reading implies a bearish trend for the US Dollar (USD).
Considering the overall price trend over the last few days, buying Coffee futures near current levels may turn out to be a good decision over a short to medium term.