The majority of the indicators on both the daily and hourly support a bullish move. Both time frames now show the market creating higher highs and higher lows. The next major level of resistance is the monthly R1 (52.39) and previous high (53.35).
Whilst we are holding above the monthly pivot point I would continue to lean towards the bullish side of this market. Should we see this market break through the pivot point to the down side, this market would then begin a bearish sentiment and ultimately would created a choppy market.
$38 is a major support level, whilst we are above that level it would suggest that this market is consolidating, before breaking higher. should this break, a down trend would have begun and the sentiment would very much be bearish.
Chart 1: LTCUSD Daily
- Broken counter trend line.
- New uptrend confirmed by higher highs and higher lows.
- Currently above monthly pivot point (44.30).
- Area of resistance at 48.36.
- MACD buy signal.
- MACD bearish divergence.
Chart 2: LTCUSD Hourly
- Broken resistance and now finding support.
- Holding above trend line.
- MACD very close to crossing (note, currently not crossed and so no signal just yet).
Resistance: 49.78, 52,39 & 53.35.
Support: 47.00, 44.25 & 38.40.
When looking at this market we must also take into account the effect the dollar has. Based on USD Index analysis, we may expect to see continued weakness in the dollar, which would back the analysis for this pair to see it rally higher.
Last weeks above expected non-farm payrolls saw a rest bite to the dollars downtrend. Looking ahead we have U.S consumer price index, which has been a burden on the fed, withe the last four missing on forecast predications.
Previous was 0.0%, with a forecast of 0.2%.