Natural Gas Price Analysis: XNG/USD approaches $2.23 hurdle on bullish RSI divergence

Natural Gas price picks up bids to refresh intraday high, snaps two-day downtrend.
Higher low of XNG/USD price contradicts with lower lows of RSI to suggest further recovery.
Immediate resistance line holds the key to further upside, weekly top prods Natural Gas buyers.
XNG/USD bears need validation from $2.12 to retake control.

Anil Panchal FXStreet

Natural Gas (XNG/USD) price renews intraday high near $2.20 as the energy instrument defies the previous two-day losing streak during early Friday. In doing so, the XNG/USD justifies hidden bullish RSI (14) divergence on the four-hour chart.

That said, Natural Gas price printed higher lows in the last two weeks but the RSI conditions commensurate to these troughs remain contradicting as the RSI (14) line marks a lower low. As a result, the price momentum towards the upside seems to gain acceptance and hence the XNG/USD buyers can expect more recovery.

However, a downward-sloping resistance line from Tuesday, near $2.23 by the press time, guards the quote’s immediate upside ahead of the weekly top surrounding $2.36.

Following that, a one-month-old horizontal resistance area surrounding $2.47-50 will be a tough nut to crack for the Natural Gas buyers before retaking the command.

Alternatively, pullback moves remain elusive unless the XNG/USD stays beyond an ascending support line stretched from late February, around $2.12 at the latest.

Even so, the $2.00 psychological magnet can challenge the Natural Gas bears before directing them to the July 2020 high of around $1.96.

XNG/USD: Four-hour chart

Trend: Further recovery 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 drops below 1.1600 on broad USD strength

EUR/USD stays under bearish pressure and trades at a fresh six-week low below 1.1600 on Tuesday. Despite stronger-than-forecast inflation data from the Eurozone, the pair struggles to stage a rebound as the US Dollar continues to attract safe haven flows amid escalating geopolitical tensions in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold drops below $5,200 on stronger USD, rallying US yields

Gold attracts some intraday selling and falls below $5,200 on Tuesday. The US Dollar climbs to a fresh high since January 20 and turns out to be a key factor exerting downward pressure on the commodity. Meanwhile, the benchmark 10-year US Treasury bond yield rises nearly 2% on the day, putting additional weight on XAU/USD's shoulders.

Crypto Today: Bitcoin, Ethereum, XRP pull back as sentiment remains in extreme market fear

The cryptocurrency market is broadly in the red on Tuesday as the Middle East grapples with an escalating war. Bitcoin (BTC) is in a pullback, trading below $67,000 at the time of writing, and most altcoins follow suit.

Middle East conflict ramps up a gear as energy price spike rips through markets

It’s another risk off day as geopolitical headwinds continue to batter financial markets. Although markets calmed during the US session and US stocks managed to post gains on Monday, this has not fed through to the European session, and stocks and bonds are sharply lower for a second day.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.