Technical analysis: key levels for gold and crude

Gold prices have steadied after their drop lower at the end of last week, but with $1070 broken it looks like more downside is on the way. 

Oil barrels
Source: Bloomberg

Gold caught in bullish momentum
After smashing through the $1070 support level on Friday, gold price has steadied. However, bearish momentum is still strong, so we look to support around $1045, last seen in February of 2010.

Intraday support is possible around $1055 and then $1049, with a move through $1060 providing some bullish momentum. However, with the downtrend so strong it looks like any bounce back towards $1070 will bring out fresh sellers.

Brent continues to head lower
The Brent crude retreat from $46.50 goes on, although for now $44.50 is halting further downside. A bounce from here would head towards $45.40 and then $45.90, while further downward momentum would hit $43.50. 

WTI steadily selling off
WTI's steady downward drift, coupled with the move through Wednesday’s lows around $41.80, indicates the price is heading in the direction of support at $40.30 and then $40.

It would take a move back through the 200-hour simple moving average ($42.09) to suggest that this period of weakness has run its course. 

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