July ICE Arabica (KCAN0) Coffee:
In the medium-term, KCAN0 is still trading within a narrowing range, namely between support at 130 and resistance at the descending trendline. That line intersects at 135.71 on 06/10, then 135.57 on 06/11.
Invalidation: Even though the continuation chart points to a bullish resolution, confirmation is needed. It would take a close 1 cent above that line to signal a bullish breakout and the end of the narrowing trading range.
July LIFFE Robusta (LRCN0) Coffee:
Bullish outlook. LRCN0 broke above the downtrend and is trading above resistance at 1350.
As long as LRCN0 remains above 1356, the picture will remain strong and it will be positioned to continue higher. The next objective is a challenge of 1400, followed by 1409, and then 1421.
Invalidation: a close below 1350 would point to a return towards the support trendline, which intersects around 1325 on 06/11 and 1327 on 06/14.
ICE Dollar Index: Strong caution is warranted with the uptrend. The Dollar Index is testing the trendline support today and oscillator divergence on the last high points to the vulnerability of the uptrend.
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