Overview:
Since our last analysis, gold has been trading sideways around the price of 1.236.00. We are facing a very quiet market today, so we are waiting for larger activity and volume on the market. I have placed Fibonacci expansion levels. I got Fibonacci expansion 61.8% at the price of 1,240.00 (currently on the test), Fibonacci expansion 100% at the price of 1,244.00 and Fibonacci expansion 161.8% at the price of 1,252.00. Our major Fibonacci expansion 100% is broken, so we may see potential testing the level of 1,218.00 (Fibonacci expansion 161.8%, almost tested). According to the 4H time frame, we can observe very weak demand in a volume below average, which is a sign that buying still looks risky. Watch for potential selling opportuntiies after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,241.57
R2: 1,244.17
R3: 1,248.37
Support levels:
S1: 1,233.37
S2: 1,230.57
S3: 1,226.37
Trading recommendations: Buying looks risky since the price has broke our Fibonacci expansion 100%.
The material has been provided by InstaForex Company - www.instaforex.com
