Natural Gas Trades On Low Volume

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Natural Gas Trades On Low Volume

Natural Gas Trades Near $1.63 On Low Volume

Natural Gas (XNG/USD) can be seen near the $1.63 level with a bearish bias on geopolitical tensions and supply disruptions.

Elsewhere, the US Dollar (USD) is supported due to the strength of DXY. With light trading volume in the US due to the holiday (President's Day), the trading action in the XNG/USD will also remain capped.

Natural Gas Markets Look Towards Fed Minutes

Looking forward, the Natural Gas will try to get cues from the Fed's meeting minutes. Even a hint of rate cuts will benefit Natural Gas. It will mean a jump in economic activities & and, thus, a higher need for energy.

The purchase manager indices from the USA are also due in the next few days. So that's also a factor which can impact the natural gas and the greenback.

The bigger picture reveals that Natural Gas (XNG/USD) is finding it difficult to find solid support due to weak global demand. That's why even the geopolitical tension isn't enough to lift the gas prices in these circumstances.

The bottom line is that Europe doesn't need as much gas as it used to, which has given rise to a supply surplus in the market.

If we look at the following resistance levels for the Natural Gas, the first is $1.99 - $2.00. It is also worth remembering that Natural Gas entered a bearish trend when it tried to break this level last time.

Once the Natural Gas clears this level, the next stop will be the $2.00, followed by the $2.13 handle. In 2023, the same level led to the formation of a triple bottom, which means it will be tough to break.

But if Natural Gas can break this level, the next target will be $2.40. However, even discussing these levels will be getting ahead of ourselves as there is not enough demand for gas right now.

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