FX.co ★ Gold analysis for August 21, 2014

Overview:

Since our last analysis, gold has been trading downwards. Just like we expected, the price tested the level of 1,273.58 in a very high volume. We got successful rejection from our Fibonacci retracement 61.8%, which caused price to start downward movement. Our Fibonacci expansion 61.8% at the price of 1,284.00 is broken. So, we may see potential testing the level of 1,260.00 (Fibonacci expansion 100%). We can observe strong selling pressure according to the 4H timeframe, which is a sign that buying looks very risky. Watch for potential selling opportunities afer retracement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,298.45

R2: 1,300.95

R3: 1,305.00

Support levels:

S1: 1,290.35

S2: 1,287.85

S3: 1,283.80

Trading recommendations: Buying Gold looks risky since price has broke support level.