FX.co ★ Gold analysis for August 16 , 2016

Since our previous analysis, gold has been trading upwards. As I expected, the price tested the level of $1,353.07 in a high volume. According to the 30M time frame, there is an upward trend and successful testing of supply, which is a sign that selling looks risky. According to the 5M time frame, I found ending of ABC corrective phase, which is a sign that buyers are in control. First resistance level is set at the price of $1,355.90. Anyway, if the price breaks the level of $1,355.90, the price may test the level of $1,359.80 (Fibonacci expansion 100%). Watch for buying opportunities on the dips.

Hourly Fibonacci pivot points:

Resistance levels:

R1: 1,358.80

R2: 1,359.40

R3: 1,360.40

Support levels:

S1: 1,356.85

S2: 1,356.25

S3: 1,355.30

Trading recommendations for today: Selling looks very risky. Watch for buying opportunities.