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Dow is losing upside momentum, EUR/JPY digs into key resistance while NG remains capped
Dow is losing upside momentum ahead of US NFP, EUR/JPY digs into key resistance while NG remains capped.
Dow is losing upside momentum
Having revisited the 200-day simple moving average (SMA) at 42,449 this week, the Dow Jones Industrial Average is once again trading below it on Friday following Thursday's Trump-Xi call and as investors prepare for US non-farm payrolls (NFPs).
Provided that no rise above Thursday's high at 42,645 is seen, the index is expected to slip through its April-to-June uptrend line at 42,212 and may retest the 41,854-to-41,778 support zone, made up of the mid-to late May and early June lows.
While the next lower 23 May low at 41,355 holds, though, the medium-term uptrend remains intact.
A rise above Thursday's 42,645 would likely engage the 19 May high at 42,842.
EUR/JPY digs into key resistance area
EUR/JPY's advance has taken it back right into its ¥164.17-to-¥165.21 major resistance area which may once again stall its advance.
If not, and if a rise above the ¥165.21 May peak were to occur, the October 2024 high at ¥166.69 would be targeted.
Immediate support may be found around the ¥164.26 late May high ahead of the late May to early June lows at ¥162.90-to-¥162.80. While this support area underpins, an upside bias prevails.
Natural gas futures stay sidelined
The recent advance in US natural gas futures prices stalled marginally below its late March low and May highs at 321.4-to-327.5. A rise above this resistance zone is needed for the early March low at 328.4 to be reached.
In this scenario the mid-to-late March highs at 363.8-to-366.4 may be eyed next.
Minor support below Thursday's 311.1 low can be seen along the 55-day simple moving average (SMA) at 302.7 and at the 29 May low at 294.4.
Further down sit the 9 April and the 6 May lows at 289.8-to-289.2 which may offer support.
Were this area to give way, a slide towards the 200-day SMA at 283.4 and the April-to-May uptrend line at 282.4 may be at hand.
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