Natural Gas Price Analysis: XNG/USD stays bearish, $2.53 and US NFP eyed - FXStreet
Natural Gas Price Analysis: XNG/USD stays bearish, $2.53 and US NFP eyed
- Natural Gas Price remains pressured for third consecutive day, sluggish near two-week low of late.
- Clear break below 100-SMA, downbeat oscillators favor XNG/USD bears.
- Five-week-old rising support line, 200-SMA challenge Natural Gas bears ahead of US employment report for June.
- XNG/USD bulls need a successful break of $2.76, as well as downbeat US NFP, to retake control.
Natural Gas Price (XNG/USD) prints a three-day losing streak around $2.62 as markets dribble ahead of the all-important US employment report on Friday. In doing so, the XNG/USD holds onto the latest bearish bias at the lowest levels in 12 days, despite being lackluster of late.
That said, the XNG/USD weakness could be linked to the energy instrument’s downside break of the 100-SMA, as well as the bearish MACD signals.
However, the RSI (14) line seesaws around the sub-50.00 area, which in turn favors the odds of the Natural Gas Price’s bottom-picking.
As a result, an upward-sloping support line from early June and the 200-SMA, respectively near $2.56 and $2.53, gains major attention.
In a case where the XNG/USD drops below $2.53, a quick fall to a horizontal area comprising multiple levels marked since May 31, near $2.43-44, can’t be ruled out.
On the contrary, an upside break of the 100-SMA level of around $2.70 isn’t an open invitation to the Natural Gas buyers as a downward-sloping resistance line from June 25, close to $2.76 at the latest, challenges the upside momentum ahead of March’s top surrounding $3.08.
Natural Gas Price: Four-hour chart
Trend: Limited downside expected
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