Natural Gas Price Analysis: XNG/USD flirts with last week's swing low, below $3.4500

Natural Gas price drifts lower for the third straight day and moves away from a multi-month top.
The technical setup favours bulls and supports prospects for the emergence of some dip-buying.
A break below the $3.0650 resistance-turned-support is needed to negate the positive outlook.

Haresh Menghani FXStreet

Natural Gas price extends last week's retracement slide from a nine-month peak, around the $3.6350-$3.6400 area, and remains under some selling pressure for the third successive day on Monday. The XNG/USD trades around the $3.4400 level, down over 1% during the Asian session, though the technical setup warrants some caution before positioning for any further depreciating move.

Oscillators on the daily chart are holding comfortably in the positive territory and the Relative Strength (RSI) has also eased from an extremely overbought zone. This, along with the recent breakout through the $3.0650 strong horizontal barrier, suggests that the path of least resistance for the XNG/USD is to the upside and supports prospects for the emergence of some dip-buying at lower levels.

In the meantime, the $3.3600 level is likely to protect the immediate downside ahead of the $3.2100-$3.1960 support zone. This is followed by the $3.0650 resistance-turned-support, which now coincides with the 200-period Simple Moving Average (SMA) on the 4-hour chart. A convincing break below the latter could negate the positive outlook and prompt technical selling around the XNG/USD.

On the flip side, the $3.5000 area now seems to act as an immediate hurdle, above which the commodity could climb back to the multi-month top, around the $3.6350-$3.6400 region touched last week. Some follow-through buying will be seen as a fresh trigger for bulls and lift the XNG/USD to the $3.8770 en route to the $4.000 mark and the YTD high, around the $4.0380 touched in January.

XNG/USD daily chart

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD keeps the bid bias near 1.3550

GBP/USD leaves behind part of the recent three-day retracement and hovers around the 1.3550 region on Monday. The Greenback’s fresh downward trend helps Cable and the rest of the risk complex recoup part of the recent ground lost while attention remains on the potential Fed rate path.

EUR/USD retakes 1.1600; looks at the 200-day SMA

EUR/USD manages to gather fresh steam and advances past the 1.1600 hurdle as Monday’s NA session draws to a close. Indeed, the pair patially reverses Friday’s sharp retracement amid the renewed downside momentum in the US Dollar. Moving forward, the flash Inflation Rate in the euro zone and US JOLTs and the ISM Manufacturing should keep investors entertained on turnaround Tuesday.

Gold: Is the bullish run over?

Gold adds to Friday’s marked decline, although it has managed to bounce off earlier lows in the sub-$4,400 region per troy ounce on Monday. The yellow metal’s pullback comes despite the softer stance in the US Dollar and steady uncertainty in the Middle East, although rising yields keep bulls at bay for now.

Ethereum: BitMine scoops 53K ETH as Lee predicts increased institutional accumulation

Ethereum treasury firm BitMine Immersion Technologies extended its ETH buying run following another round of weekly acquisitions. The firm purchased 53,501 ETH last week, its largest weekly purchase since June and marking 65 consecutive weeks of ETH acquisitions. The move has lifted BitMine's stack to 5.901 million ETH worth $14.63 billion at the time of writing.

Oil rallies on fresh persian gulf strikes

Energy prices are trading firmer this morning after the US carried out targeted strikes against Iran, drawing retaliatory strikes and reinforcing concerns about a prolonged stalemate in the Persian Gulf. Oil prices started the week stronger following the first military strikes between the US and Iran in a month. ICE Brent briefly moved back above US$90/bbl in early morning Asia trading.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.