Natural Gas Price Analysis: XNG/USD bounces off five-week-old support near $2.30

Natural Gas snaps two-day downtrend but struggles to extend corrective bounce.
Convergence of 21-EMA, three-week-old descending resistance line prods buyers.
Multiple supports from late February restrict immediate downside.
Sluggish oscillators suggest a continuation of downward grind.

Anil Panchal FXStreet

Natural Gas Price (XNG/USD) portrays a corrective bounce from the short-term key support while snapping a two-day losing streak around $2.31 heading into Friday’s European session. In doing so, the energy benchmark bounces off a five-wee-long horizontal support area. Even so, XNG/USD remains pressured for the third consecutive week.

It’s worth observing that Natural Gas’s latest rebound lacks support from the MACD and RSI as both the oscillators portray a lack of momentum, which in turn increases the odds of the commodity’s further weakness.

However, a clear downside break of the $2.30-28 support area, encompassing multiple levels marked since February 19, restricts the short-term downside of the Natural Gas price.

Should the quote breaks the $2.28 support, the odds of witnessing a slump toward the monthly low of $2.13, also the lowest level since August 2020, can’t be ruled out.

In a case where the XNG/USD remains bearish past $2.13, the $2.00 will be crucial to watch as a break which could make the quite vulnerable to testing the mid-2020 lows surrounding $1.53.

On the flip side, a convergence of the 21-bar Exponential Moving Average (EMA) joins a downward-sloping trend line from March 05, to highlight $2.37 as the short-term key upside hurdle.

Also acting as important resistance for the Natural Gas price is $2.50 and the 200-EMA level surrounding $2.68.

Overall, Natural Gas price remains bearish but short-term grinding can’t be ruled out.

Natural Gas: Four-hour chart

Trend: Further 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.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.