- Natural Gas Price defends the previous day’s corrective bounce off three-week low within bearish chart formation.
- Two-month-long support-turned-resistance guards immediate recovery of XNG/USD.
- Convergence of weekly resistance line, 200-SMA adds to the upside filters.
- Natural Gas sellers may find it difficult to break $2.43 support confluence.
Natural Gas Price (XNG/USD) pares weekly losses around $2.61 during early Friday as markets consolidate ahead of the US employment report for July. In doing so, the XNG/USD extends the previous day’s recovery from the lowest level in three weeks while staying within a 1.5-month-long descending trend channel.
It’s worth noting, however, that the recently bullish MACD signals and the upbeat RSI, as well as the US Dollar’s retreat from a multi-day high, allowed the Natural Gas Price to recover.
Even so, the previous support line from early June guards the immediate recovery of the XNG/USD near $2.64.
Following that, a convergence of the 200-SMA and a one-week-old falling trend line, close to $2.67 could challenge the Natural Gas buyers.
It’s worth noting, however, that the XNG/USD bulls must defy the bearish channel by crossing the $2.75 hurdle to restore the market’s confidence.
On the contrary, pullback moves may aim for the latest swing low of around $2.50. However, a convergence of the nine-week-old horizontal support zone joins the aforementioned bearish channel’s lower line to around $2.43 while offering a major challenge to the Natural Gas sellers.
Overall, XNG/USD remains on the bear’s radar despite the latest recovery.
Natural Gas Price: Four-hour chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.