On analysis of the movements of the volatile moves of natural gas futures during the last few trading sessions, I blame the volatility prevailing in AUD/USD, which resulted in excessive indecisiveness in most of the commodities, including gold and natural gas. For more indepth analysis, subscribe my YouTube channel ‘SS Analysis’.
Today’s automated selling of Australian dollar against the yen sent it plunging to multi-year lows on a host of major currencies. At one point it was down 5 percent on the yen and almost 4 percent on the U.S. dollar, before clawing back much of the losses as trading calmed and humans took charge. This currency upheaval has pushed natural gas at the upper edge of ‘Historical Zone’ where the bargain hunters emerge.
On a monthly time frame, natural gas has, historically, seen a record-supporting zone, due to the presence of bargain hunters. Whenever natural gas has touched this ‘Zone’, they saw an immediate upward move. This time, this phenomenon looks like it will repeat as soon as the Australian dollar comes back on track; natural gas should benefit the most in dollar terms. Let’s have a look at the movements of natural gas at the upper edge of ‘Historical Zone’ in different time frames in the following charts.
Monthly Natural Gas
Weekly Natural Gas
Daily Natural Gas
4-Hour Natural Gas
1-Hour Natural Gas
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