Gold price and Brent crude oil price weaken overnight
Gold and Brent crude weaken overnight, yet is this the beginning of a wider bearish phase?
Gold sells off from Fibonacci resistance
Gold managed to move sharply lower from the 76.4% Fibonacci resistance level yesterday, with the recent trend of lower highs remaining in play.
That being said, we are seeing the price turn higher after a failed attempt at breaking below the key $1474 mark. A break below there would add confidence that we are set to continue this recent downtrend. Given the somewhat flat nature of this current move, such a leg lower does look likely. However, should we see a rise through the $1500 peak seen yesterday, it would provide us with a more bullish short-term view.
Brent continues to consolidate
Brent Crude has been consolidating around the 76.4% Fibonacci support level for much of the week, with the price failing to gather any momentum on a fleeting move lower yesterday.
The recent tentative rally seems to be coming under pressure already, although we would need to see a break below $57.24 to bring about that bearish view. Until then, this Fibonacci support level is going to be key in determining whether we are set for another leg higher or not.
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