XNGUSD: Natural Gas Price Hits 5-month High

FXOpen

The hostilities in Ukraine have drastically changed the world's natural gas transportation routes, and yesterday's information about possible interruptions in the supply of liquefied gas from Australia due to the planned strikes of workers led to the fact that the XNG/USD quote jumped above the psychological level of USD 3.0.

Citigroup analysts believe that gas prices in Europe could double by January if strikes in Australia, which is an important supplier of liquefied gas to Europe and Asia, drag on through the autumn.

And the FT writes that yesterday's growth was accelerated due to the fact that traders closed short positions, thereby increasing demand.

The XNG price chart shows that the extremes of summer are forming an ascending channel, and its upper limit has not yet been reached. The ability of the bulls to gain a foothold above the psychological level of USD 3.0 will indicate the strength of demand.

Important lines on the XNG/USD chart:
→ resistance from the upper border of the channel;
→ support from the median line of the channel;
→ support at USD 2.51;
→ support at USD 2.85 – yesterday this level near the June maximum acted as resistance, but was broken.

Market volatility is likely to continue today as news on US natural gas reserves is scheduled to be released at 17:30 GMT+3.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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