Technical Outlook – 10 Jan 2022

Today is the first day of the year for us returning to the desk at Hammer Capital News! To start off the year we’re eyeing GBP/USD, XAU/USD and BTC/USD for potential trade setups!

GBP/USD (1D Chart)

Price is approaching a resistance trendline that has been forming since June 2021. We are looking for a bounce from this resistance, and a break below the support trendline. The RSI is holding strong bullish levels however, so it may be worth proceeding with caution here.

GBP/USD (1H Chart)

On the 1H chart we’re looking for price to break to the downside as seen below. Price is currently topping out around previous highs and the RSI has bearish momentum, so technicals are looking strong for a sell off, but we want to see this move confirmed prior to getting short.

XAU/USD (1H Chart)

Price has broken the bullish structure, and I am now short. Price has resistance at the previous structure and the 50 hour moving average. My stop is conservatively placed above these resistance structures, and I’m eyeing downside into the signficiant 1750 area.

BTC/USD (1D Chart)

Bitcoin is currently at a key support zone. We are looking for a break below this zone. The RSI is holding bearish levels, and has rejected overextended levels, suggesting that price is not yet overextended.

BTC/USD (1H Chart)

Price has broken above the 50 hour moving average however has failed to break above structural resistance. I am targeting downside to the $40,000 mark on open short positions.