LTCUSD price is moving inside a descending triangle pattern on its 1-hour time frame and is currently testing the resistance at 3.100. This might continue to keep gains in check and push LTCUSD back to the bottom for another possible bounce.
The 100 SMA is below the 200 SMA, confirming that the path of least resistance is to the downside. RSI is also on the move down, which means that sellers are in control of price action.
However, stochastic is on the move up, indicating that bullish momentum could pickup. If so, an upside break past the triangle resistance could be seen, taking LTCUSD up to the triangle highs at 3.300.
Dollar weakness was mostly responsible for the price bounce yesterday, as Fed Chairperson Yellen mentioned that they’re keeping a close watch on financial market developments to see if any adjustments to their tightening path need to be made. She also acknowledged that the equity slump could wind up hurting US economic growth.
US initial jobless claims and another speech by Yellen are lined up today, setting up the possibility of another dollar selloff. Upbeat results, however, could spur gains for the US currency and pave the way for a test of support near 3.000 for LTCUSD.
On Friday, the US retail sales report is up for release and a 0.1% uptick in the headline figure is eyed. The core version of the report might post a flat reading, indicating weak consumer spending for the period. Negative figures could spur another round of dollar selling, likely triggering an upside break for LTCUSD.
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