LTCUSD is still trading inside its descending triangle pattern after bouncing off the resistance highlighted earlier. Price is heading back up to retest the resistance around $56-57, which lines up with the 200 SMA.
Speaking of moving averages, the short-term 100 SMA is still below the longer-term 200 SMA so the path of least resistance is to the downside. This means that the resistance is more likely to hold than to break. In fact, the 100 SMA already seems to be holding as dynamic resistance for now.
Stochastic is starting to turn lower so LTCUSD might follow suit as bearish pressure returns. RSI has some room to climb so bulls could stay in the game until the resistance is tested.
If selling pressure is strong enough, a break below the triangle support could even take place. The chart pattern spans $54 to 68 so a breakout in either direction could lead to a rally or selloff of the same size.
Sentiment for cryptocurrencies is improving again as bitcoin moves closer to its network upgrade next month. There are rival versions in existence but investors appear confident that the core version could win out and emerge stronger with the ability to handle more transactions.
Meanwhile, the US dollar keeps tossing and turning on tax reform prospects. Infighting in the GOP party has led many to doubt that the plan could get enough votes to clear the Senate. Apart from that, Trump has yet to announce his pick for the next Fed Chairperson and a dovish candidate could mean more dollar weakness on lower tightening odds next year.
Data from the US economy has been mostly stronger than expected, though, so December hike expectations remain in play. A dovish hike, however, could further weigh on the currency as market watchers are more focused on future moves this time.
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