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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.

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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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