FX.co ★ Gold analysis for September 02, 2014

Overview:

Since our last analysis, gold has been trading downwards. As we expected, the price tested the level of 1,268.07 in a very high volume according to the 4H time frame. Our Fibonacci expansion 61.8% at the price of 1,284.00 is broken. So, we may see potential testing the level of 1,258.00 (Fibonacci expansion 100%). Our Fibonacci retracement 38.2% at the price of 1,292.00 held successful, which caused price to continues with downward movement. According to the 4H time frame, we can observe strong supply, which is a sign that buying looks risky. Watch for potentaial selling opportunities after retracement. 

Daily pivot Fibonacci points:

Resistance levels: 

R1: 1,289.98 

R2: 1,291.16 

R3: 1,293.07 

Support levels: 

S1: 1,286.16

S2: 1,284.98 

S3: 1,283.07 

Trading recommendations: Buying Gold looks risky since the price has broken the support level.