FX.co ★ Gold analysis for August 02, 2016

Since our previous analysis, gold has been trading upwards. As I expected, the price tested the $1,363.90 level in a high volume. According to the 1H time frame, I have found that price broke consolidation trading range and did successful test of support after the breakout, which is a sign that Gold may continue higher. 21 SMA is supporting the price very well and my advice is to watch for buying opportunities on the dips. The first take profit level is set at the price of $1,374.50.

Daily Fibonacci pivot points:

Resistance levels:

R1: 1,353.20

R2: 1,355.30

R3: 1,358.00

Support levels:

S1: 1,347.00

S2: 1,345.20

S3: 1,342.50

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