LTCUSD Price Technical Analysis – Short-Term Channel

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LTCUSD Price Technical Analysis - Short-Term Channel

LTCUSD Price Technical Analysis - Short-Term Channel

LTCUSD has previously formed a short-term reversal pattern and broken below the neckline confirmation, indicating that a selloff is in order. Price is now trading inside a descending channel connecting the latest highs and lows.

LTCUSD recently bounced off the channel support but has been trading sideways, waiting for stronger bullish pressure. If that takes place, move back to the resistance could be possible.

The 100 SMA is above the 200 SMA so the path of least resistance is to the upside. However, a downward crossover appears to be brewing while stochastic is pointing down, suggesting that price might follow suit. RSI, on the other hand, is pointing up and suggesting that buyers are still in control.

Another bounce off the channel support at 3.330 could still take place before more buyers join the fold and take LTCUSD up to the 3.400 level, which might spur another move down.

Catalysts fore stronger volatility include the release of the US preliminary GDP report, which might see a downgrade from 0.7% to 0.4% for Q4, likely dampening demand for the US dollar. Fed Chairperson Yellen has already hinted that economic growth was likely weak in the last quarter of 2015 so a significant downgrade is a possibility.

However, risk appetite has supported higher-yielding assets like bitcoin and litecoin lately, spurred mostly by the recovery in crude oil prices. OPEC and non-OPEC officials are set to convene again next month and probably come up with a coordinated plan to keep prices steady.

Still, fears of a Brexit are weighing on risk-taking activity, as this could mean more financial and economic uncertainty for the UK and the rest of the world. More top-tier reports are scheduled next week, which might also inspire some profit-taking ahead of this weekend.

 

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.