NATURAL GAS BEARISH TREND CONTINUES AMID UKRAINE CRISIS

The price of natural gas declined to the lowest level since January 27th after the meetings between Macron and Putin, and Biden and Olaf Scholz. In a statement on Tuesday, Macron said that Putin was looking forward to de-escalating tensions with Ukraine. The Russian president has galvanized more than 70,000 troops near the Ukrainian border. On his part, Biden threatened to sanction the Nord Stream 2 pipeline project if Russia invades Ukraine. Natural gas price is affected by these tensions because of the vast amount that Russia sells to Europe.

The FTSE 100 index tilted higher on Tuesday after the latest results by BP. the company’s profit jumped to an eight-year high of almost $13 billion, helped by the rising oil and gas suppliers. The company decided to maintain its dividend and buy back stock worth $1.5 billion. The results came a week after Royal Dutch Shell reported bumper profits. Similarly, ExxonMobil and Chevron had net profit of $23 billion and $15.6 billion, respectively. In the UK, Liberals called for the government to impose more taxes on oil and gas firms.

The German DAX declined by about 0.15% even after the European Union announced a major investment to boost the region’s chip reliance. In a statement, Ursula von der Leyen said that the bloc will invest 43 billion euros in new generation microchip facilities. The goal of this investment will be to address the ongoing chip shortage that has affected many manufacturers in the region. The EU expects to double its market share in the industry from 10% to 20% by 2030. Other governments are also investing in chips. For example, in the US, the Biden administration is investing $52 billion in chips. The top stocks to watch in Wall Street will be Pfizer, Peloton, and KKR.

XNGUSD

The XNGUSD pair declined to 4.10 as the price of natural gas slumped. On the four-hour chart, the pair moved slightly below the important support level at 4.48, which was the highest level on September 1. It remains below the 25-day moving average while the MACD moved slightly below the neutral level. The pair is also slightly above the 61.8% Fibonacci retracement level. Therefore, there is a likelihood that it will keep falling in the near term.

EURUSD

The EURUSD pair tilted lower on Tuesday as investors assessed the ECB and Fed decisions. It is trading at 1.1413, which is slightly below last week’s high of 1.1483. The pair has formed a bullish flag pattern that is shown in red. Also, it moved above the 25-day and 50-day moving averages. It has also formed a cup and handle pattern, meaning that the pair will likely break out higher in the coming days.

ETHUSD

The ETHUSD pair continued its bullish trend as cryptocurrency prices rally continued. It is trading at 33082, which is slightly below this week’s high of 3,100. It is below the upper side of the Bollinger Bands and slightly above the 25-day moving average. Oscillators have also kept rising. Therefore, the pair will continue rising as bulls target the key resistance at 3,630.