GAS PRICE DOWNWARD MOMENTUM ACCELERATES ON SUPPLY HOPES

The price of natural gas tumbled sharply as investors continued focusing on the changing supply dynamics. This price action is mostly because of a significant increase in storage injection in the US. It also declined after a US regulator barred the Freeport LNG plant, citing safety concerns. In a statement, the Pipeline and Hazardous Materials Safety Administration said that the plant should take some more measures to address safety before reopening. Freeport, the second-biggest US LNG export partner had a major blast in June that disrupted supplies. In a statement, the plant’s operator said that it expects a full restart to happen in October.

The euro rose slightly as investors continued reflecting on the latest European consumer inflation data. Data published on Friday showed that that the bloc’s inflation surged to the highest level on record as the cost of food and energy rose. Headline inflation jumped by 8.6% on a year-on-year basis while core inflation continued rising. Countries like Spain and Italy published record inflation as German’s prices declined slightly. Therefore, analysts are pricing in a big rate hike by the European Central Bank (ECB) later this month. The euro will react to the latest German trade numbers and Euro area’s producer price index (PPI) data.

Cryptocurrency prices remained under pressure during the weekend as concerns about the industry remained. Several large players in the industry have come under pressure. BlockFi, which was once valued at over $4 billion is being acquired by FTX for about $25 million. At the same time, Celsius and Voyager Digital have suspended withdrawals while Three Arrow Digital went bankrupt. Voyager was once one of the biggest crypto hedge funds with over $16 billion in assets.

EURUSD

The EURUSD pair formed a hammer pattern on the four-hour chart. In price action analysis, this pattern is usually bullish. It has moved between the middle and lower lines of the Bollinger Bands while the Williams % Range and Relative Vigor Index (RVI) have pointed upwards. The pair is also slightly below the 25-day moving average. Therefore, there is a possibility that the pair will keep rising as bulls target the key resistance at 1.0435.

USDCHF

The USDCHF pair bounced back ahead of the upcoming Swiss consumer inflation data. It rose to a high of 0.9620, which was the highest point in 2 weeks. As it rose, the pair managed to move above the descending channel shown in green. It also moved slightly above the 25-day moving average while the DeMarker indicator rose to the overbought point. The pair has also formed a break and retest pattern, meaning that it will likely continue its recovery.

XNGUSD

The XNGUSD pair remained under pressure as investors priced in more supply in the coming months. It is trading at 5.60, which was the lowest level since April. It has moved below the 25-day moving average while the MACD and the momentum oscillator have continued falling. It is also below the important resistance level at 6.56. The pair will likely continue keep falling in the near term.