Overview:
Since our last analysis, gold has been trading upwards. The price tested the level of 1,273.42. The price rejected from our Fibonacci expansion 100% at the level of 1,258.00, and that is reason why we saw bullish movement. If the price breaks the level of 1,251.00 in a high volume, we may see more downward movement and potential testing the level of 1,218.00 (Fibonacci expansion 161.8%). I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1,272.00 (currently on the test) and Fibonacci retracement 61.8% at the price of 1,281.00. According to the 4H time frame, we can observe weak demand in the background, which is a sign that buying look risky.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,270.03
R2: 1,270.83
R3: 1,272.13
Support levels:
S1: 1,267.43
S2: 1,266.66
S3: 1,265.33
Trading recommendations: Buying at this stage looks risky since our Fibonacci retracement 38.2% is on the test.
The material has been provided by InstaForex Company - www.instaforex.com
