Technical analysis: key levels for gold and crude

Gold remains within a range, where the recent respect of the top boundary brings about a bearish short-term picture. Meanwhile, a Brent breakout could bring about a more consistent period of upside. 

Gold sell-off hits the buffers

Gold has been selling off sharply since rallying towards the range top of $1367, bringing about a heightened chance of a move back into the $1310 region.

However, with the price starting to turn higher, there is a good chance we will see further upside in the near term to retrace some of the downside seen over recent days. As such, look for short-term gains, with the bearish view coming back into play with either a deep retracement or an hourly close below $1333.

Brent looks set for next leg higher

Brent managed to push through the $70.85 resistance level earlier in the week, providing a heightened chance of a strong bullish breakout.

With the price consolidating since, watch out for a potential break higher to signal a bullish phase coming into play. We are currently seeing a spike in prices, and this is likely to persist, with a break below $70.85 needed to raise questions over this bullish short-term view.

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