Overview:
Gold has been trading downwards. As we had expected, the price tested the level of $1,193.00. The short-term trend is beairsh. The price broke the strong support cluster at $1,201.00 and we may expect further bearish direction. We can observe a sign of weakness (SOW) after a breakout of trading range, which signals that buying looks risky. I have placed Fibonacci retracement to find potential support. I got Fibonacci retracement 61.8% at the level of $1,192.00 (on the test). If the price breaks the level of $1,192.00 in a high volume, we may see the level of $1,178.00 (demand zone) on test.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,208.70
R2: 1,210.00
R3: 1,212.25
Support levels:
S1: 1,204.00
S2: 1,203.00
S3: 1,200.00
Trading recommendations: Be careful when buying gold below the price of $1,225.00 and watch for selling opportunities after retracement.
The material has been provided by InstaForex Company - www.instaforex.com