Natural Gas Set To Close Its Worst Week

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Natural Gas Set To Close Its Worst Week

Natural Gas Set To Close Its Worst Week In A Month

If the natural gas continues its current trajectory, it will end up closing one of its worst weeks in a month! Ever since Monday's opening, a 10% decline has already occurred in the natural gas market.

Given the winter season is already in motion in Europe & other countries, it appears that the natural gas market is worried about other things rather than demand & supply.

Fed's Hawkish Comments Support Greenback

In the US, the greenback is mostly flat after staging some impressive gains. followed by the Fed's Powell comments. Earlier, some of the Fed members had hinted at how the central bank is done with rate hikes. But the Fed's chair made it clear that's not the case at all, which has also paved the way for more rate hikes.

The recent comments have allowed the greenback to stage some gains during the week. But when compared with the losses from the last week, a lot more work will be needed from the greenback.

For now, the Natural Gas trading price is $3.22, mainly driven by the market's mood to avoid any risky assets. In Europe, most of the member countries are experiencing less cold temperatures. Furthermore, the gas storage is also pretty much full, which means we can expect more downside in natural gas.

The only thing that supports a bullish natural gas is increased tension in the Middle East. In this case, the natural gas will cross the $3.64, followed by the $4.00 and the $4.33.

On the contrary, the natural gas continues to face pressure from the dynamic resistance of the 55 SMA, which will send it towards $3.20. Any further downside pressure will send it toward the $3.06 and then the $3.00 support zone.

Another factor that could support the natural gas prices is a sudden drop in temperature in Europe and the rest of the world. In that case, the natural gas storage will start to decline, which will fuel global demand.

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