Dow, EUR/JPY rallies stall as US natural gas prices stabilise
Dow, EUR/JPY rallies stall as US natural gas prices stabilise amid planned US-Iran talks.
Dow rally is losing upside momentum
Having briefly traded in 4-month highs at 43,183, the Dow Jones Industrial Average is beginning to lose upside momentum as traders digest Federal Reserve (Fed) Chair Jerome Powell's remarks and look forward to US-Iran talks.
While Wednesday's low at 42,871 holds, immediate upside pressure remains in play with a rise above this week's 43,183 high possibly engaging the late December high at 43,374.
Were Wednesday's low at 42,871 to be slipped through, though, the 200-day simple moving average (SMA) at 42,551 may be revisited.
Further potential support sits at the 5 June low at 42,212 and Monday's 41,981 low. Then there is minor support around the late May low at 41,828 and the 15 May low at 41,778.
Critical support for the long-term uptrend remains to be seen at the 23 May low at 41,354, only a fall through which may lead to a much deeper correction taking place.
EUR/JPY rally loses steam
EUR/JPY's swift advance has taken it to ¥169.71, to within inches of its ¥169.99 mid-July 2024 low before losing upside momentum. Nonetheless the cross is on track for its fifth consecutive week of gains.
A rise above the ¥169.71-to-¥169.99 resistance area would likely target the 3 June 2024 peak at ¥170.89.
Minor support below Tuesday's ¥167.91 low can be spotted at the mid-June ¥167.61 high.
While the next lower 19 June low at ¥166.04 holds, the medium-term uptrend is deemed to be intact.
Natural gas futures stem their decline
The recent sharp advance and swift decline in US Natural gas futures prices amid the Israel-Iran conflict has taken these close to their late May-to-June lows at 295.7-to--294.4. These levels offer support with the 200-day simple moving average (SMA) at 292.4.
While the 295.7-to-292.4 support zone holds the 12 June high at 311.7 may be revisited. Further up the 5 May high at 316.0 may act as minor resistance ahead of the more significant late March low, May and early June highs at 321.4-to-327.5.
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