Bearish the Cotton future currently $1 lower after trading as high as $85.66

The Cotton future recovering almost all the way back to $85.32 today, after dipping down to $83.86.

ICE Cotton is currently trading at $84.31 following the release of Fed Chair Powell speech data from the United States.

Meanwhile, United States New Home Sales (Apr) came out at 683,000, while a consensus of analysts was expecting 663,000. United States Services PMI released today at 13:45 UTC with a figure of 55.1, while the previous figure was 53.6. Fresh Building Permits data from United States came out at 1.15 million.

Cotton's upper Bollinger Band® is at $87.89 which indicates a further downward move may follow. In contrast, Cotton could begin to recover as it approaches significant support, now 15 cents away from $84.16. Dipping below could be an indication that further losses are ahead.

Overall, the technical analysis landscape suggests that on the balance of probability, ICE Cotton is expected to maintain its bearish bias.

Taking a look at other Softs commodities, negative performances are evident as Sugar retreats 0.73% to trade around $25.8. Coffee slumps 0.95% to trade around $187.4.

With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as tomorrow at 14:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to -920,000 from the preceding figure of 5 million.

Furthermore, United States FOMC Meeting Minutes will be released tomorrow at 18:00 UTC.

The commodity has been trending positively for about 2 months. Over the past 11 months, the Cotton future has retreated 41.81% from a noteworthy peak of $146.62.