LTCUSD has formed lower highs and found support near 3.000, creating a descending triangle chart pattern on its daily time frame. Price is testing the top of the triangle at 3.500, which appears to have held as resistance.
In that case, LTCUSD could be headed for the triangle support once more, especially since stochastic and RSI are both moving down from oversold levels. Price could stay inside this consolidation pattern for now since moving averages have been oscillating and might hold as dynamic inflection points.
A breakout in either direction could lead to a drop of 1.850 points, which is the same height as the triangle formation. However, an upside break could find near-term resistance around the top of the triangle at 4.850-5.000.
Dollar strength came back in play yesterday when risk aversion returned to the markets. This has been mostly spurred by the drop in commodity prices when Saudi Arabia and Iran seemed reluctant to cooperate with any deal that requires trimming production levels.
Another factor keeping the dollar supported against higher-yielding assets like litecoin is the possibility of a Brexit, as this might mean more financial and economic uncertainty for the UK and the rest of the global economy.
Data from the US economy has been mixed, casting doubts on whether the Fed can afford to hike interest rates again in March or not, but hasn’t dulled the dollar’s safe-haven shine recently. For today, existing home sales and US crude oil inventories are up for release, both of which could have a strong impact on dollar demand and market sentiment again.
Barring any major market catalyst, it’s likely that the current consolidation pattern for LTCUSD might hold, keeping price in a range until strong buying or selling pressure materializes.
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