Technical analysis: key levels for gold and crude

Both gold and Brent are coming under pressure, reaching crucial support levels that will dictate the state of play for the day.

Gold rebound under pressure

Gold has turned lower this morning, with the price dropping into the crucial $1341 support level. A break below there would point towards a more bearish shift in gold, with $1333 being the next notable support level in view.

With the price creating higher highs and higher lows on the wider perspective, there is a good chance that such near-term downside would be to set up a deeper retracement, with the 76.4% level at $1330 coming into view.

Brent back at crucial support level

Brent is back at the $70.85 support level yet again this morning, as we see a heightened possibility of a near-term pullback for oil prices. An hourly close below $70.85 would point towards a retracement of the $66.61-$72.79 rally.

As such, watch for whether the market posts an hourly close below $70.85, which would provide a bearish short-term signal, indicating a potential move into the $68.97 region. However, this would simply be seen as a good buying opportunity, for only with a break below $66.61 would this market start to look bearish on the medium-term view.

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