Overview:
Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,225.42 in a volume above average. The price rejected from our Fibonacci retracement 38.2% at the level of 1,272.00, and that is the reason why we saw further bearish bias. Our major Fibonacci expansion 61.8%% is broken, so we may see potential testing the level of 1,218.00 (Fibonacci expansion 161.8%, almost tested). According to the 4H timeframe, we can observe very weak demand in a volume below average, which is a sign that buying still looks risky.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1,229.88
R2: 1,230.76
R3: 1,232.17
Support levels:
S1: 1,227.06
S2: 1,226.18
S3: 1,224.77
Trading recommendations: Buying looks risky since the price has broke our Fibonacci expansion 61.8%.
