Overview:
Since our last analysis, gold has been trading downwards. As we expected the price tested the level of 1,279.91 in a volume below average according to the 1H time frame. We can observe an ultra high volume (buying climax) according to the 1h timeframe, which is a sign that buying looks very risky. Our Fibonacci expansion 61.8% at the price of 1,284.00 is broken. So, we may see potential testing the level of 1,260.00 (Fibonacci expansion 100%). I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1,292.00 and Fibonacci retracement 61.8% at the price of 1,303.00. According to the 4H time frame, I have placed corrective Fibonacci expansion and I found Fibonacci expansion 161.8% at the price of 1,290.00 (currently on the test).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,290.46
R2: 1,294.28
R3: 1,300.47
Support levels:
S1: 1,278.08
S2: 1,274.26
S3: 1,268.07
Trading recommendations: Buying Gold looks risky since the price has broken the support level.
The material has been provided by InstaForex Company - www.instaforex.com
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