Natural Gas Price Analysis: XNG/USD bulls approach $2.48 resistance confluence

Natural Gas cheers upside break of two-month-old resistance at a fortnight high.
Convergence of 50-day EMA, 38.2% Fibonacci retracement of March-April downside appears a tough nut to crack for XNG/USD bulls.
Ascending support line from May 05 adds to the downside filters for the Natural Gas price.

Anil Panchal FXStreet

Natural Gas Price (XNG/USD) remains firmer around $2.42, up for the third consecutive day while flirting with the highest levels in two weeks during early Monday in Europe.

In doing so, the energy instrument cheers the previous day’s sustained break of a downward-sloping resistance line from mid-March, now immediate support near $2.38.

Adding strength to the bullish bias is the RSI (14) line that stays firmer around the 50.00 level, suggesting a continuation of the upward grind.

However, the 50-day Exponential Moving Average (EMA) and 38.2% Fibonacci retracement level of the XNG/USD’s downside from early March to mid-April, near $2.48 at the latest, could challenge the Natural Gas bulls.

In a case where the commodity price manages to provide a daily close beyond $2.48, the odds of witnessing a run-up beyond the previous monthly high of nearly $2.58 can’t be ruled out.

On the contrary, the resistance-turned-support line from March, near $2.38, restricts the immediate downside of the Natural Gas price.

Following that, an upward-sloping trend line from May 05, close to $2.30 by the press time, appears crucial to watch for the XNG/USD bears to watch as a break of which could give back control to them.

Natural Gas Price: Daily chart

Trend: Further 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.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.