Technical analysis: key levels for gold and crude

Gold is expected to break higher amid short-term retracement, while Brent prices look set for further downside.

Gold retraces after recent rally

Gold has been retracing after the rally seen on Monday, with the dollar strength denting its bullish resurgence.

There is a strong possibility that this is a precursor to another leg higher. However, it is also worth being aware that a break below $1216 would provide a more bearish signal. With that in mind, a bullish picture remains in place unless we break below $1216.

Brent breaks lower from consolidation phase

Brent managed to break lower following the continued respect of the $81.63 resistance level.

That builds on the bearish pattern in play over recent weeks, pointing towards further downside. Given the relatively minimal decline beyond the $79.64 support level, it looks like we should have further left in the tank, with a bearish view holding unless we break above the $81.63 level.

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