FX.co ★ Gold analysis for August 17, 2016

Since our previous analysis, gold has been trading downwards. The price tested the level of $1,340.65 in a high volume. According to the 30M time frame, there is an intraday downward trend. I found potential ending of ABC corrective phase, which is a sign that buying looks risky. Strong resistance level is set at the price of $1,346.00 (Fibonacci expansion 100% corective). My advice is to watch for selling opportunities on the pullbacks. First support is set at the price of $1,340.95. If the price breaks the level of $1,340.90 in a high volume, we may see potential testing of $1,335.50 (Fibonacci expansion 100%).

Hourly Fibonacci pivot points:

Resistance levels:

R1: 1,350.40

R2: 1,351.20

R3: 1,352.60

Support levels:

S1: 1,347.75

S2: 1,346.90

S3: 1,345.60

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