Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,231.98 in a volume above average. The price rejected from our Fibonacci retracement 38.2% at the level of 1,272.00, and that is the reason why we saw further bearish bias. Our major Fibonacci expansion 61.8%% is broken, so we may see potential testing the level of 1,218.00 (Fibonacci expansion 161.8%). According to the 4H timeframe, we can observe weak demand in a volume below average, which is a sign that buying looks risky.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,247.78
R2: 1,251.47
R3: 1,257.47
Support levels:
S1: 1,235.77
S2: 1,232.07
S3: 1,226.07
Trading recommendations: Buying looks risky since the price has broke our Fibonacci expansion 61.8%.
The material has been provided by InstaForex Company - www.instaforex.com
