Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,280.21 in a volume just above the average according to the daily timeframe. As you can see from the chart, our Fibonacci retracement 61.8% completed successfully, so selling at this stage looks risky. I have placed Fibonacci expansion to find potential support levels and I got Fibonacci expansion 100% at the price of 1,272.00. If the price breaks the level of 1,281.00 (our Fibonacci retracement 61.8%), we may see more downward movement. Anyway, we can observe strong demand and buying climax according to the 4H timeframe, which is a sign that selling looks risky at this stage.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,295.33
R2: 1,295.63
R3: 1,296.13
Support levels:
S1: 1,294.33
S2: 1,294.03
S3: 1,293.53
Trading recommendations: Be careful with selling Gold at this stage since Fibonacci retracement 61.8% is on the test.