LTCUSD Technical Analysis for 03/07/2018 – Wait for a Triangle BreakoutMarch 7, 2018
LTCUSD has formed lower highs and found support around $192, creating a descending triangle pattern. Price is testing support at the moment and might be due for a bounce to the resistance around $210.
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. These moving averages are also in line with the top of the triangle, solidifying it as a ceiling.
However, stochastic seems to be on the move up to show that buying momentum is present. RSI has more room to climb so LTCUSD could still make it to the top of the triangle.
If sellers are eager to hop in, price could break below support and lead to a drop of the same height as the triangle. This spans $192 to $252, so the selloff could last by around $60. Similarly, a break past the resistance could lead to a rally of the same size.
The US dollar took advantage of risk-off flows against higher-yielding assets and currencies as fears of a trade war returned on Cohn’s resignation announcement. Recall that this top economic adviser has been one of the more vocal ones in pursuing a more diplomatic approach to trade negotiations, such as refraining from labeling China as a currency manipulator or renegotiating NAFTA instead of scrapping it.
By the looks of it, cryptocurrencies are once again taking their cue from overall investor sentiment. This suggests that LTCUSD could tumble as risk aversion picks up or rally when risk-taking returns.
The focus could shift back to fundamentals for the US dollar as the NFP release draws near. Traders are expecting to see a 201K gain in hiring but weaker than expected data could ease tightening concerns and lead to a selloff for the dollar. Apart from that, central bank decisions are lined up in the next couple of days and major changes in market sentiment could also push LTCUSD around.
Source: Read Full Article