Overview:
Gold has been trading downwards. The price tested the level of $1,178.44 in a volume above the average. In the daily time frame, we can observe a demand bar in a volume above the average. The price broke the key support level around $1,185.00 in the background and selling looks very risky at this stage. Also, our main supply trendline got broken. My advice is to watch for potential buying opportunities on dips. I had placed Fibonacci retracement to find potential resistance support levels. I got Fibonacci retracement 38% at the level of $1,180.00, Fibonacci retracement 50% at $1,177.00 and Fibonacci retracement 61.8% at $1,173.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,191.00
R2: 1,195.05
R3: 1,201.75
Support levels:
S1: 1,177.55
S2: 1,173.40
S3: 1,166.00
Trading recommendations: strong support at the level of $1,185.00 is broken in the background. Selling looks very risky. My advice is to watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company - www.instaforex.com