LTCUSD recently surged past its short-term range resistance to confirm that bullish momentum is coming into play. However, price has stalled just below the $70 mark and might need to pull back before heading further north.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% retracement level lines up with the broken range resistance that might now hold as support.
The 100 SMA has just crossed above the longer-term 200 SMA to signal that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse. These moving averages are also just below the lowest Fib, adding an extra layer of support in a deeper retracement.
Stochastic is still pointing down to signal that selling pressure is present. Similarly, RSI is moving lower so LTCUSD might follow suit and keep up its correction for now.
Cyrptocurrencies have been on a tear these days after bitcoin surged to new record highs in anticipation of another network upgrade in November. This could elicit a similar reaction to that of the August upgrade, so traders are positioning ahead of the actual event this time and the positive sentiment has carried over to other digital assets like LTCUSD.
On the other hand, the dollar is under a bit of selling pressure owing to downbeat CPI data released on Friday. Both headline and core readings came in a notch below expectations but the retail sales reports turned out mixed as the core version beat the consensus.
Still, expectations for a December hike are in play, especially after Yellen reiterated her hawkish bias during her speech over the weekend. Traders are now turning their attention to the odds of three hikes next year and the lack of momentum in hiring and inflation could dampen these expectations.
Apart from that, the presence of geopolitical risks from North Korea and the political uncertainty in Europe is also supporting cryptocurrencies these days.
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