News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here:
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here:
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here:
Natural Gas Prices May Rise on Temperature Outlook, Chart Setup

Natural Gas Prices May Rise on Temperature Outlook, Chart Setup

Thomas Westwater, Analyst

Natural Gas Prices, Weather Outlook, Technical setup – Talking Points

  • Natural Gas prices move higher on colder weather outlook
  • EIA inventory levels remain elevated vs. five-year average
  • Technical outlook looks bullish, but scope for gains capped

Natural gas prices are seeing a bullish start to the week as colder weather is expected across the southwest United States over the next two weeks. A larger draw in inventories last week is likely adding some fuel to the upward movement as well. The technical picture appears bullish in the short run, but the path higher sees resistance on the horizon.

The most recent NOAA 8-14 day Temperature Probability Outlook from December 13 sees below-average temperatures blanketing much of the southwestern United States. This bullish forecast comes at a critical time, with heating gas down over 20% from its October 2020 high following a historically warm November across not only the United States but also Northern Europe.

NOAA 8-14 Day Outlook Temperature Probability

Natural Gas Chart

Source: NOAA

Outside of temperature forecasts, inventory levels also provided a bullish tailwind for heating gas, with the most recent EIA Weekly Natural Gas Storage Report showing a draw of 91 billion cubic feet (Bcf) for the week ending December 4. While the inventory draw lifted prices, natural gas stocks are currently 260 Bcf over the five-year average, according to EIA data.


Nat gas EIA inventory

Source: EIA

To the upside, the technical setup for natural gas appears to have room for recent momentum to carry prices higher, with the 6-hour Moving Average Convergence Divergence (MACD) on the verge of crossing above the zero line, and the Relative Strength Index (RSI) pushing higher along a supportive trendline.

However, trendline resistance will soon come into focus for natural gas bulls should prices continue higher. Meanwhile, the 20-day downward trending Simple Moving Average offers immediate resistance at 2.662. The week ahead offers weekly EIA natural gas statistics, according to the DailyFX Economic Calendar.

6-Hour Natural Gas Chart (NYMEX)

Natural Gas Chart

Chart created with TradingView


--- Written by Thomas Westwater, Analyst for

To contact Thomas, use the comments section below or @FxWestwateron Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.