Natural Gas Price Analysis: Bulls look hopeful due to soaring temperature in Texas

Natural Gas price is hovering near the horizontal resistance of the Ascending Triangle pattern at $2.44.
Investors are awaiting the natural gas inventory data by the US EIA for the week ending June 09.
Soaring temperatures in US Texas would increase the usage of air-conditioning.

Sagar Dua FXStreet

Natural Gas price (XNG/USD) has shown a recovery move after a minor correction to near $2.40. The energy component is expected to deliver more upside amid a solid demand outlook. The Electricity Reliability Council of Texas (ERCOT) said Tuesday that due to soaring temperatures this week, the usage of air-conditioning might climb in Texas to a record 80.3 gigawatts.

Investors are going to keep their entire focus on the natural gas inventory data by the United States Energy Information Administration (EIA) for the week ending June 09. Last week, the US EIA reported a jump in natural gas inventory by 109 billion cubic feet (bcf).

Natural Gas price is auctioning in the Ascending Triangle chart pattern on an hourly scale, which indicates a sheer contraction in volatility. Upward-sloping trendline of the aforementioned pattern is plotted from June 01 low at $2.18 while the horizontal resistance is placed from May 31 high at $2.44.

The 50-period Exponential Moving Average (EMA) at $2.38 is providing support to the Natural Gas bulls.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which indicates a non-directional performance.

Going forward, a decisive break above May 31 high at $2.44 by the Natural Gas price will result in a breakout of the volatility contraction and will open doors for May 23 low around $2.51 and May 24 high at $2.61.

In an alternate scenario, a decisive drop below June 06 low at $2.24 will drag the asset toward June 01 low at $2.18. A break below the latter will expose the asset to May 05 low around $2.10.

Natural Gas hourly chart

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD holds above multi-month lows and 0.6900 ahead of Fed's Warsh

AUD/USD struggles to capitalize on the previous day's modest bounce from its lowest level since early July and trades above 0.6900 during the Asian session on Friday. Thursday's disappointing Australian jobs data tempered RBA rate-hike bets, capping the Aussie. The US Dollar (USD), meanwhile, is regaining positive traction as this week's hot US CPI and PPI reports keep Fed rate hike bets firmly on the table. This further keeps a lid on the pair ahead of Fed Chair Kevin Warsh speech.

USD/JPY climbs above 158.00 as USD edges higher ahead of Warsh's speech

USD/JPY attracts some buyers during the Asian session on Friday, building on the overnight bounce from the vicinity of 157.50, or a one-week low, amid the emergence of some US Dollar buying. This week's hot US CPI and PPI reports lifted Fed rate-hike bets, which, along with stable US bond yields and geopolitical uncertainties, help revive USD demand. Traders, however, remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen, which could cap the currency pair ahead of Fed Chair Kevin Warsh's speech.

Gold weakens to $4,150 amid reviving USD demand as traders await Warsh's speech

Gold drifts lower during the Asian session on Friday, reversing part of the previous day's move up amid reviving US Dollar demand. US inflation data released this week reaffirmed bets for at least one Fed rate hike this year, while US bond yields stabilize after Thursday's steep decline. This, along with geopolitical risks, underpins the safe-haven USD, which, in turn, is seen weighing on bullion ahead of Fed Chair Kevin Warsh's speech.

Ethereum reclaims $2,400 as PPI hits 6.3% and yields fall

Ethereum (ETH) is back above $2,400 on Thursday, rebounding from a brief decline toward $2,340, which was sparked by an upside surprise in the US wholesale inflation report. The Producer Price Index (PPI) increased 1.3% monthly and 6.3% annually in September, far above expectations of 0.5% and 5.3%, respectively.

The Iran war will eventually end. Tariffs won't. Here's the problem

Two cost shocks are in the September Consumer Price Index (CPI), and they have different half-lives. Energy is up 20.4% on the year and accounts for about 1.3 points of the 3.7% headline, and that shock reverses when Oil does: Brent was back at its pre-war price on July 1 and above $100 again by the end of the month, after the ceasefire collapsed on July 8.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.