Gold and Brent crude expected to push higher despite divergence
Gold strengthens as Brent crude loses ground, but both markets look likely to push higher from here.
Gold breaks resistance, rallying into wider Fibonacci level
Gold has enjoyed a sharp surge since last week’s Federal Open Market Committee (FOMC) and Bank of England (BoE) meetings, with price rising through the crucial $1834 resistance level.
That break brought about a surge into the wider 76.4% Fibonacci resistance level of $1861. A break up through that point signals a potential push up towards the next major resistance level of $1916.
As such, the reaction to this level will be key, with a break back below the $1822 required to bring a potential bearish picture into play.
Brent crude decline into 61.8% Fibonacci support brings buying opportunity
Brent crude has been on the back foot over the course of the past 24-hours, with price falling back into the 61.8% Fibonacci support level.
The latest break through the $84.20 swing-high brought an end to the recent trend of lower highs, bringing the expectation that this current pullback is a retracement before the bulls come back into play.
With that in mind, a bullish view is in play unless price falls back below the $79.99 low established a week ago.
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