Overview:
Since our last analysis, gold has been trading sideways around the level of $1,105.00. As we expected, the price tested the level of $1,098.60. The intraday trend is neutral. According to the daily time frame, we can observe demand in a volume below average . Also, according to the daily time frame, we can observe that price supports the level of $1,107.00 (four days in a row). According to the H1 time frame, we can observe a potential climatic action in the background with later absorption, which means selling looks very risky. First resistance level is expected around $1,109.50. Anyway, my advice is to wait for changing in trend behavior before taking any setup. Support level is around the price of $1,1099.00.
Daily Fibonacci pivot points :
Resistance levels
R1: 1,108.50
R2: 1,109.60
R3: 1,111.30
Support levels:
S1: 1,105.00
S2: 1,104.75
S3: 1,102.00
Trading recommendations: Absorption volume is seen in the H1 time frame. The trend is neutral. Selling still looks risky, so watch for potential buying opportunities if trend changes.
The material has been provided by InstaForex Company - www.instaforex.com