FX.co ★ Analysis of gold for August 1, 2016

Since our previous analysis, gold has been trading upwards. As I expected, the price tested the $1,354.82 level in a high volume. According to the 1H time frame, I have found solid support at $1,346.20. There is a weak supply at this support, which is indication that sellers don't have enough power for larger correction. I have placed Fibonacci expansion to find potential end of downward correction and I got Fibonacci expansion at $1,346.15. Watch for buying opportunities. Take profit level is set at $1,354.80.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,357.60

R2: 1,358.30

R3: 1,359.50

Support levels:

S1: 1,355.40

S2: 1,354.80

S3: 1,353.70

Trading recommendations for today: selling looks risky, watch for buying opportunities.