Natural Gas Price Analysis: Falling wedge lures XNG/USD bulls but $2.76 guards immediate recovery

Anil Panchal FXStreet

Natural Gas Price picks up bids to extend late Friday’s rebound from two-week low within bullish chart pattern.

Convergence of 50-EMA, falling wedge’s top line challenges XNG/USD buyers.

Sluggish oscillators suggest continuation of upward grind; sellers need validation from 11-week-old support line.

Natural Gas Price (XNG/USD) clings to mild gains around $2.72–73 during early Monday as it stretches the late Friday’s corrective bounce amid a sluggish Asian session. In doing so, the energy instrument also justifies the market’s cautious optimism, as well as a pullback in the US Dollar Index (DXY).

Also read: US Dollar Index: DXY retreats towards 103.00 on Friday’s Doji, Fed remarks at Jackson Hole eyed

It’s worth noting that the recently sluggish MACD signals and the RSI (14) line’s grinding near the 50.0 level suggest the XNG/USD’s further advances.

However, a convergence of the 50-Exponential Moving Average (EMA) joins a top-line of the two-week-old falling wedge bullish chart formation to highlight the $2.76 as a tough nut to crack for Natural Gas buyers.

June’s top and the monthly high, respectively near $2.93 and $3.07, can test the XNG/USD buyers before directing them toward the theoretical target of around $3.11.

On the contrary, the stated wedge’s bottom line, close to $2.63 by the press time, restricts the immediate downside of the Natural Gas Price.

Following that, an ascending support line from early June, around $2.59 as we write, will act as the last defense of the XNG/USD bulls.

Overall, the Natural Gas Price is expected to improve but the upside appears limited.

Natural Gas Price: Four-hour chart

Trend: Limited upside 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.

EUR/USD remains bid near 1.1650 post-US ADP

Finally some respite for the risk complex see EUR/USD partially recover from the recent steep sell-off, this time hovering around the 1.1650 zone amid decent gains in a context of renewed selling pressure on the US Dollar. However, the duration and extension of this bounce should be put to the test amid the unabated tensions in the Middle East.

GBP/USD meets resistance around 1.3400

In line with its risk-linked peers, GBP/USD stages a modest comeback on Wednesday, although meeting some resistance around the 1.3400 neighbourhood. Cable’s humble recovery comes on the back of the fresh downward bias in the Greenback amid a marginal improvement in the global sentiment and steady geopolitical effervescence.

Gold flirts with $5,200 amid safe haven demand

Gold partially fades Tuesday’s sharp pullback, regaining the $5,200 mark per troy ounce on the back of the resurgence of investors’ demand for the safe-haven space. The precious metal remains well propped up by the deterioration of the geopolitical scenario in the Middle East, while the softer tone in the US Dollar collaborates with the uptick.