FX.co ★ Gold analysis for August 11, 2014

Overview:

Since our last analysis, gold has been trading downwards. The price tested the level of 1,305.89 in a volume above average according to the 4H time frame. According to the 1H timeframe, we can observe supply in ultra high volume (selling climax), which is a sign that buying looks risky. We can also observe rejection from our Fibonacci retracement 61.8% at the price of 1,320.00. Anyway, if the price breaks the level of 1,321.00 in a higher volume, we may see testing the level of 1,343.00.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,312.30

R2: 1,312.96

R3: 1,314.03

Support levels:

S1: 1,310.16

S2: 1,309.50

S3: 1,308.43

Trading recommendations: Buying Gold looks risky since we got successful rejection from our Fibonacci retracement 61.8%.