Rigzone: Crude Oil Gains; Natural Gas Surges

Crude oil for July delivery entered the holiday weekend in the black, gaining 36 cents to settle at $100.59 a barrel. Oil received a boost from a weaker dollar, which made the commodity a more attractive buy for investors holding currencies other than the greenback. The ICE Dollar Index, which tracks the dollar's value against foreign currencies, fell more than 0.8 percent Friday. Crude oil traded within a range from $100.04 to $101.24 Friday. For the week, oil is up 1.1 percent.

Memorial Day marks the traditional start of summer in the U.S., and summerlike temperatures should prevail throughout the Midwest, South, and East during the next two weeks. As a result, investors expect stronger demand for air conditioning and gas fired power. Natural gas consequently ended the day 18 cents higher at $4.52 per thousand cubic feet. The July contract price peaked at $4.56 and bottomed out at $4.365. Since last Friday, natural gas has gained 6.9 percent. June gasoline settled four cents higher at $3.09 a gallon. The futures price fluctuated from $3.04 to $3.08, and gasoline is up 5.1 percent for the week.

Forex Anaysis on Majors

EUR

The planned breakout variant for buyers was realized and achievement of the assumed targets is <<supported>> by the current ascending direction of the indicator chart, and the progress of bullish activity, marked by the indicator at a break of the key resistance levels. Thus, for open long positions the targets will be 1,4180/1,4200, 1,4240/60, 1,4300/40. Alternative for sales will be below 1,4060 with targets 1,4000/20, 1,3940/60.

CHF

The planned short positions from the key resistance levels were realized with achievement of the basic assumed targets. OSMA trend indicator, having marked preservation of bearish activity in general, gives grounds to preserve priorities of planning sales for today. Thus, presently, we assume a possibility of retracement to the nearest resistance levels at 0,8720/30, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term sales, on condition of formation of topping signals, the targets will be 0,8680/90 or further breakout variant up to 0,8640/50, 0,8600/10. Alternative for buyers will be above 0,8800 with targets 0,8830/40, 0,8870/80.

GBP

The planned breakout variant for buyers will be realized with achievement of the assumed targets. OsMA trend indicator, having marked advantage of bullish activity on the break of the key resistance levels, gives grounds to prefer long positions for planning trades for today. Thus, presently, taking into account the overbought condition of the rate, we assume a possibility of retracement to the nearest supports. 1,6260/80, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term long positions, on condition of formation of topping signals, the targets will be 1,6320/40 or further breakout variant up to 1,6380/1,6400. Alternative for sales will be below 1,6180 with targets 1,6120/40, 1,6060/80.

JPY

Relatively low level of activity of both parties, marked by OsMA trend indicator yesterday, gives grounds to leave previous trade plans for today. Thus, we assume a possibility of achievement of supports 81,50/60, where it is recommended to evaluate activity development on the charts with smaller time frame. For short-term long positions, on condition of formation of topping signals, the targets will be 81,90/82,00, 82,20/30, or further breakout variant up to 82,60/70, 83,00/10. Alternative for sales will be below 81,20 with targets 80,80/90, 80,40/50, 80,00/10.