Technical analysis: key levels for gold and crude
Gold has paused off the back of a sharp period of weakness, while Brent frailty continues to drive price closer to a key breakdown level.
Gold continues consolidation phase after recent declines
Gold remains within a consolidation phase following a decline from the 76.4% Fibonacci retracement level.
The brief decline seen earlier in the week subsequently brought us back into a consolidation phase. Given the recent downtrend, it makes sense to expect further downside, with a break through $1279 required to bring a more bullish short-term view. However, we will ultimately need to see $1266 broken for a more confident wider bearish picture to emerge.
Brent trendline break could be precursor to bearish shift
Brent managed to break through a confluence of trendline and Fibonacci support earlier in the week, denting hopes for a bullish rebound.
The creation of higher highs and higher lows remain in place, yet as we get closer to the $69.33 support level, it is likely becoming increasingly likely that we will break out of this recent uptrend. As such, watch for whether we can break through that $69.33 swing low to determine market outlook for Brent.
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