Natural Gas falls amid low trade volume on the US holiday.

• Natural Gas pulls back a bit as US markets are closed for the Labor Day holiday.
• The dollar weakens slightly after Friday’s reaction to the non-farm payrolls data.
• There is support at $2.80, which is likely to hold before the rally returns.

The Natural Gas price falls slightly during the European session, while the US markets are closed for Labor Day. No substantial falls are expected as European gas supplies are under pressure. Over the weekend, supplies to three Norwegian gas fields came to a standstill, sending Norwegian gas exports to the EU to their lowest level since 2015.

Meanwhile, the US dollar is trading mixed after a US jobs report triggered a knee-jerk reaction. The DXY Dollar Index first weakened on early headlines, reversing an hour later as markets digested the content of the report, which pointed to still strong labor market conditions. With the US on vacation, no big movements are expected in either Natural Gas futures or the Dollar.

At the time of writing these lines, Natural Gas is trading at $2.844 per MMBtu.

News about Natural Gas and market drivers

• The price of Natural Gas in Europe rose 5.3% due to surprise supply interruptions in Norway.
• The risk of strikes in Australia remains high, which could affect Natural Gas supply in the future.
• The spot price of electricity in Japan rose 5.5% on the week as bad weather hurts solar supply and increases pressure on LNG supplies. Reports of rising regional LNG supply costs also influence prices.
• Further unforeseen cuts are expected in Norway due to unforeseen maintenance at the Aasta Hansteen field. The Dvalin field is also affected, while planned works at Oseberg are prolonged due to unforeseen delays.

Natural Gas Technical Analysis: Stable on US holiday.

Natural Gas rose last week, along with crude oil prices. Although the European block has its gas reserves more than 90% full, it seems that it will have to fend for itself to cover any additional needs.

To the upside, $3 is the level to watch after the double top formation on Friday and Thursday. Just above, the 200-day SMA is present as a limit and has not been tested in recent months. Keep an eye on $3.03 before targeting $3.18 and testing the top of the trend channel.

To the downside, the trend channel has done a great job of propping up the price action. Aside from a small false breakout, ample support has been provided near $2.71. The 55-day SMA has to provide that much-needed support at $2.71 ahead of the rising trend channel at $2.63. Any dips can still be caught by the 100-day SMA near $2.58.