33.8 C
Monday, May 27, 2024
HomeTradingLTCUSD Technical Analysis for 12/15/2017 – Downtrend or Just a Pullback?

LTCUSD Technical Analysis for 12/15/2017 – Downtrend or Just a Pullback?


Related stories

LTCUSD is trending lower on its 1-hour time frame, moving inside a small descending channel and testing the resistance. However, this may merely be part of a major correction from its stellar rally.

Price is currently hanging around the 38.2% Fibonacci retracement level at $260 and could be in for a deeper pullback to the 50% Fib at $240. An even larger retracement could find support at the 61.8% level around $210 or the 200 SMA dynamic inflection point near $200.

The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. The 100 SMA is holding as dynamic support at the moment and the gap between the moving averages is widening to reflect stronger bullish momentum.

Stochastic is pointing up to show that buyers are in control of LTCUSD. RSI also looks ready to head north so LTCUSD might follow suit. An upside break from the nearby channel resistance at $280 could be enough to confirm a pickup in bullish momentum.

The dollar has gained some support from the FOMC decision as the central bank upgraded their growth and jobs forecasts. This could keep tightening expectations in play, even as Chairperson Yellen reiterated her cautious inflation outlook and downplayed the potential impact of tax cuts.

However, LTCUSD appears to be losing ground to bitcoin which is resuming the climb after CBOE launched bitcoin futures and a couple of other exchanges will have their own. Sustained demand for bitcoin could lead investors to transfer some of their other cryptocurrency holdings to this particular digital asset.

Meanwhile, the dollar has also been able to benefit from stronger US retail sales and import prices, setting the tone for a continued pickup in US growth. Of course geopolitical risks could also come in play and any setbacks to tax reform could mean losses for the dollar. Lawmakers are scheduled to vote on the tax bill next week.


Latest stories