Technical analysis: key levels for gold and crude

Gold has hit the April high, and could be set for more, while Brent is fighting hard to bounce off a key trendline. 

Gold bars
Source: Bloomberg

Gold rallying

The gold rally has now hit, and attempted to break, the $1295 level. If it does, then $1307 is next.

Only a drop back below $1280 would really imperil the rally, although with the Federal Reserve meeting next week, and the US dollar trying to rally, gold could be vulnerable in the short term. A close above $1295 is needed to create a new higher high and maintain upward momentum.

Brent struggling

For three sessions now Brent has bounced off the key rising trendline that goes back to July last year. A bounce could be in the offing, but we need to see a close above $49.92 to really suggest the bulls are in control.

Longer-term, the trend is still down, so $46.71 and then $44.11 are the next targets. 

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