LTCUSD recently broke past the resistance around $45 and bounced off this area of interest to resume the climb. Price is still in its impulse wave and the Fib extension tool illustrates the next potential targets.
Price bounced off the 38.2% extension at $51.74 but could still have enough upside momentum until the next levels. The 50% extension level is located at $54 while the 61.8% extension is closer to $56. A move past those resistance levels could lead to a climb to the full extension all the way up to $64.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. The 200 SMA also appears to be holding as dynamic support and could continue to keep losses in check. However, the gap between the moving averages is narrowing to signal a potential downward crossover and a drop below the area of interest. If that happens, LTCUSD could make its way down to support at $35.
Stochastic is already dipping into the oversold region to signal a slowdown in bearish pressure and a return in bullish momentum. However, RSI has some room to head south so bears could still push LTCUSD much lower from here.
Cryptocurrencies enjoyed a bullish boost late last week when Goldman Sachs analyst Sheba Jafari spoke of more potential gains for bitcoin. Dollar demand returned before the end of the week, however, after the NFP report printed stronger than expected headline readings.
Employment rose by 222K in June versus the projected 175K increase while the May reading was upgraded from 138K to 152K. The jobless rate edged up from 4.3% to 4.4% while average hourly earnings fell short with a 0.2% uptick instead of the estimated 0.3% gain. Still, Fed rate hike expectations for September advanced even with expectations of balance sheet reinvestment operations by then.
Remarks from FOMC officials this week could continue to set the tone for Fed policy and dollar price action. Stronger indications that the Fed could stick to its rate hike timeline could mean more gains for the US currency while cautious comments could allow litecoin to take advantage.