FX.co ★ Gold analysis for July 02, 2014

Overview:

Since our last analysis, gold has been trading sideways, around 1,326.14 on volume below the average according to the Daily timeframe. According to the daily timeframe, we can observe testing of our major resisntace level 1,333.00, which is a sign that buying at this stage looks risky. Be careful with buying, since we may see potential bearish correction. According to the previous price action, we got a support level at the price of 1,304.00 (Fibonacci retracement 38.2%). According to the 4H timeframe, we can observe doji bar on volume above the average, which is a good sign that we may see possible bearish movement. I have placed Fibonacci retracement levels and I got Fibonacci retracement 61.8% around the price of 1,333.00. Its very quite market today, so we need to see larger volume and larger price action to confirm futher bearish movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,332.66

R2: 1,335.24

R3: 1,339.40

Support levels:

S1: 1,324.34

S2: 1,321.76

S3: 1,317.60

Trading recommendation: Be careful with buying at this stage since we have got buying climax in the background.