Brent crude oil, gold and aluminium prices drop ahead of central bank meetings
Outlook on Brent crude oil, gold and aluminium in view of this week’s Fed, ECB and BoE meetings.
Brent crude oil slips to 55-day SMA
Brent crude oil last week again failed at its key $87.99 to $89.35 resistance zone, made up of the mid-October low and December high, as traders await rate decisions by the likes of the US Federal Reserve (Fed), the European Central Bank (ECB), the Bank of England (BoE) and their impact on the demand for oil.
With the January support line having been slipped through this week, the 55-day simple moving average (SMA) at $83.99 and at the 19 January low at $83.98 are being revisited. Failure at these levels on a daily chart closing basis, would indicate that at least a short-term top is being formed with the 21 November low at $82.32 and the November trough at $80.81 being in focus.
While the $83.98 level underpins on a daily chart closing basis, however, another attempt to break through the mid-October low to January highs at $87.99 to $89.35 may unfold.
Having said that, only a rise and daily chart close above the $89.35 early December high would indicate that a technical bottom has been formed with the October and November highs as well as the 200-day SMA at $96.91 to $99.60 then representing upside targets.
Gold retraces lower from its nine-month high at $1,949
Last week’s rise in the price of gold to a new nine-month high at $1,942 per troy ounce has been followed by a steady retracement lower towards the November-to-January uptrend line at $1,908 as traders await a plethora of interest rate decisions by the likes of the Fed, ECB and BoE.
Support below the uptrend line can be spotted at the $1,897 mid-January trough. Were it to be slipped through, a deeper correction lower may be witnessed with the June 2022 high at $1,877 being eyed. Immediate resistance is to be found at the $1,929 mid-January high and also at Monday’s $1,934 high.
Only a currently unexpected advance above the recent high at $1,949 would put the $1,959 January 2021 peak and then the April 2022 peak at $1,998 as well as the psychological $2,000 mark back on the map.
These levels remain in focus as long as the 18 January low at $1,897 and the March 2022 lows at $1,896 to $1,891 aren’t being slipped through.
Aluminium has been rejected by its seven-month high
Aluminium’s near 20% January rally on expectations that China’s swift reopening will lead to higher demand for the metal has taken it to a seven-month high at $2,678 per metric ton. This level could not, however, be overcome last week with the metal falling back to its $2,555 mid-January low this week, a slip through which would confirm a minor top being formed.
A drop through the $2,555 low would engage 200-day SMA at $2,493. Minor resistance can now be spotted at the $2,576 December high and also at last Friday’s $2,607 low.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
