When you look at the Tuesday session, we initially did try to rally, but we gave back those gains to test the $2.85 level. I think this is a situation where market participants will look at that massive candlestick from the Monday session and realized there is still a lot of bullish pressure underneath. After all, technical traders will look at this through the prism of a massive bullish engulfing candlestick. Furthermore, we have the 50 Day EMA sitting right in the middle of the candlestick, and that suggests that there are a lot of reasons to think that traders are jumping in and trying to take advantage of “value.” Energy and its MeaningAll things being equal, it’s worth noting that energy has a major meaning for what happens next. While natural gas is highly sensitive to heating in the northeastern part of the United States, it’s also a form of energy that used to produce electricity, something that you should probably be paying close attention to. Underneath current trading, we do have the $2.65 level that has proven itself to be important multiple times, so as long as we can stay above there, I would have to assume that traders believe that there will still be energy demand in the United States, which of course means good things for the economy.If we do break down below the $2.65 level, that would be a very ugly turn of events, especially considering that the market is likely to continue to see downward pressure, meaning that people believe that despite the fact that it is a cyclically strong time of year, the economy is slowing down. I would not expect that, but it would be an extraordinarily negative turn of events.More By This Author:GBP/USD Forecast: Pound Awaits Big Moves Amid UncertaintyNZD/USD Forecast: Continues To StabilizeGBP/USD Forecast: Continues To Recover
