Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,212.10. According to the 4H time frame, we can observe strong rejection again from our Fibonacci retracement 61.8% at the price of 1,229.00, which caused price to start with downward movement. According to previous price action, we got support level at the price of 1,208.00 (swing low like support). If the price breaks the level of 1,208.00 in a high volume, we may see potential testing the level of 1,194.00. According to the daily chart, we can observe indecision bar in a volume below average, so we need to wait for larger supply in an high volume to confirm futher bearish movement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,218.84
R2: 1,219.50
R3: 1,220.57
Support levels
S1: 1,216.70
S2: 1,216.04
S3: 1,214.94
Trading recommendations: Buying still looks risky since we got strong rejection from our Fibonacci retracement 61.8%
The material has been provided by InstaForex Company - www.instaforex.com
