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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
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
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
Natural Gas Breaks Above Chart Resistance on Colder US Outlook

Natural Gas Breaks Above Chart Resistance on Colder US Outlook

Thomas Westwater, Analyst

Natural Gas Prices, Temperature Outlook, Technical Chart Outlook– Talking Points

  • Natural gas prices break higher on US temperature outlook
  • EIA storage levels return closer to five-year historical average
  • Trendline resistance from 2020 high may turn into support
Advertisement

Natural gas prices are trading higher this week as colder than average weather across the southwestern United States appears likely, according to the latest 8-14 day temperature outlook from the National Weather Service Climate Prediction Center. Florida is also slated for colder than average temperatures, while Alaska and the northernmost portion of the continental U.S. are expected to warm up.

NOAA 8-14 Day Outlook Temperature Probability

NOAA temp outlook

Source: NOAA

The most recent EIA Weekly Natural Gas Storage Report saw a decrease of 122 BcF, bringing the surplus over the five-year average down to 243 Bcf. While inventory remains elevated, the most recent storage draw is seeing levels accelerate lower towards its five-year average (chart below). The next EIA inventory report crosses the wires on December 23 according to the DailyFX Economic Calendar.

EIA NATURAL GAS UNDERGROUND STORAGE

EIA Nat gas storage chart

Source: EIA

The technical outlook for natural gas appears bullish, with trendline resistance recently giving way to upside movement. Bulls will have to keep prices steady at current levels with little downside to spare before testing the potential support trendline. The MACD is currently trending higher, but bulls are aiming for confirmation with a cross over the zero line.

Natural gas has managed to gain some momentum with a near 15% move from the monthly swing lows; even so, prices are still far off the 2020 high of 3.396. The path forward for natural gas looks far from certain, but longer-term momentum looks bullish with the 100- and 200-day Simple Moving Averages drifting higher. Still, RSI is neutral and a break back under the trendline may have natural gas prices aiming for December lows in the last weeks of 2020.

Daily Natural Gas Chart (NYMEX)

Natural gas price chart

Chart created with TradingView

Natural GAS TRADING RESOURCES

Just getting started? See our beginners’ guide for FX traders

What is your trading personality? Take our quiz to find out

Join a free webinar and have your trading questions answered

--- Written by Thomas Westwater, Analyst for DailyFX.com

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

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

DISCLOSURES