NY coffee may retrace to $1.2640

SINGAPORE: New York July coffee may retrace to a support at $1.2640 per bushel, as it has failed to break above a resistance at $1.3310.

The support and the resistance are identified respectively as the 76.4 percent and the 61.8 percent Fibonacci projection levels of a downward wave C, the third wave of a three-wave cycle from the Nov. 8, 2016 high of $1.8350. This wave is capable of travelling to $1.1555.

A break below $1.2640 could cause a loss to $1.2180 while a break above $1.3310 could lead to a gain to $1.3855.