Technical analysis: key levels for gold and crude

Gold continues to consolidate despite a temporary breach below near-term support. Meanwhile, WTI has broken out from a recent rising wedge formation, with further downside looking likely. 

Gold holds up at historical support level

Yesterday saw gold break below the recent $1218 hurdle, only to hold up at the $1214 level. That level represents the low from early May 2017.

As such, we remain within a consolidation phase, with a potential short-term bounce impending given the rally back into the recent range.

WTI breakdown points to further losses

WTI has broken lower from the 76.4% retracement, the fall below $68.02 signaling a strong possibility of further downside.

As such, further weakness is likely in crude prices, with a rally above the $70.00 mark required to negate this bearish outlook.

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