Gold and Brent prices start to gain ground

Gold is starting to regain ground ahead of the ECB meeting, while Brent is caught between two 76.4% Fibonacci levels.

​Gold rallies through intraday resistance to bring more bullish picture

Gold has been seeing widespread losses throughout the past week, with the price action breaking below the key $1492 swing low. While that points towards the possibility of further downside to come, the short-term picture shows the potential for gains.

With gold often gaining ground when there is significant monetary easing, today's European Central Bank (ECB) decision could bring gains for the short term. The hourly chart highlights that bullish intraday picture building, with the break through $1498 and $1501 pointing towards upside for the day ahead. A break below the $1489 level would negate that bullish short-term outlook.

Brent caught within Fibonacci support and resistance

Brent has started to drift lower following a rally into the 76.4% Fibonacci resistance level at $63.15. That highlights the fact that from a wider perspective, the market continues to create lower highs which would only be negated by a break through $65.42.

With that in mind, the decline we are currently seeing could bring that bearish trend back into play. A fall below $59.19 would see that move come to fruition. However, while the price has broken lower from that Fibonacci resistance level, we have now seen a fall into a support zone which encompasses the short-term 76.4% Fibonacci ($60.18) and 200-day simple moving average (SMA). As such, the outlook will be determined by which of these two 76.4% Fibonacci levels breaks first.

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