Natural Gas Price Analysis: XNG/USD eases from 200-SMA within symmetrical triangle as Fed decision looms
- Natural Gas Price takes offers to refresh intraday low, prints the first daily loss in three.
- Failure to cross the key moving average joins RSI retreat, sluggish MACD to tease sellers.
- Two-week-old symmetrical triangle challenges XNG/USD bears beyond $2.27; bulls need validation from $2.42.
Natural Gas Price (XNG/USD) remains on the back foot around $2.37 as it snaps a two-day winning streak during early Wednesday. In doing so, the XNG/USD portrays the typical market consolidation ahead of the Federal Reserve’s (Fed) monetary policy announcements.
That said, the Natural Gas Price recently reversed from the 200-SMA while staying within a 12-day-long symmetrical triangle formation.
Apart from the chart pattern suggesting sideways of the energy instrument, the sluggish MACD signals and the RSI (14) line’s retreat from the above-50.0 area also challenge the XNG/USD traders.
However, the commodity’s U-turn from the key moving average suggests an intraday decline in the price. The same highlights the 23.6% Fibonacci retracement of the XNG/USD’s fall from May 19 to June 01, close to $2.33 at the latest.
Following that, the stated triangle’s bottom line of around $2.27 will be in the spotlight as a break of which could quickly drag the Natural Gas Price towards refreshing the yearly low, currently around $2.11. It should be noted that May’s bottom of near $2.17 can act as an intermediate halt during the anticipated fall.
Alternatively, XNG/USD recovery needs validation from the 200-SMA hurdle of around $2.39, closely followed by the $2.40 round figure.
Also acting as the short-term key upside barrier for the Natural Gas price is the stated triangle’s upper line, close to $2.42 at the latest, a break of which can refresh the monthly high of around $2.43 by approaching the 50.0% and 61.8% Fibonacci retracements levels, near $2.50 and $2.57 in that order.
Natural Gas Price: Four-hour chart
Trend: Limited downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
