Source: PaxForex Premium Analytics Portal, Fundamental Insight
Given the Easter weekend, trading volumes across all financial instruments will be thin, which could magnify moves in price action. Today’s US March NFP report could provide a catalyst for the US Dollar, which may move cryptocurrencies around during the session, especially if the report disappoints like the ADP report on Wednesday.
The US NFP Report for March is predicted to show 239K job additions and an unemployment rate of 3.6%. Forex traders can compare this to the US NFP Report for February, which showed 311K job additions and an unemployment rate of 3.6%. Private Payrolls for March are predicted to show 215K job additions and Manufacturing Payrolls 5K job additions. Forex traders can compare this to Private Payrolls for February, which showed 265K job additions, and Manufacturing Payrolls, which showed 4K job losses. The Average Work Week for March is predicted at 34.5 hours. Forex traders can compare this to the Average Work Week for February, reported at 34.5 hours. Average Hourly Earnings for March are predicted to increase by 0.3% monthly and 4.3% annualized. Forex traders can compare this to Average Hourly Earnings for February, which rose 0.2% monthly and 4.6% annualized. The Labor Force Participation Rate for March is predicted at 62.5%. Forex traders can compare this to the Labor Force Participation Rate for February, reported at 62.5%.
While cryptocurrencies appear ripe for a pullback, Litecoin enjoys encouraging fundamental developments, which could support more upside. The upcoming Litecoin halving event continued to supply bullish pressures, while the Collateral Network (COLT) pre-sale, which supports fractionalized NFTs, magnifies positive sentiment. A notable upside catalyst is the AIO Exchange, which supports Litecoin trading. Several major cryptocurrency exchanges delisted Litecoin after it implemented its privacy protocol. Finally, the swift addition of the Ordinals protocol, which took about one week, allows NFT trading on the Litecoin network, improving the overall outlook for Litecoin for 2023 and making it one of the most exciting, well-established cryptocurrency pairs. Traders should buy the dips moving forward.
The forecast for the LTC/USD remains bullish after this cryptocurrency pair advanced into its Ichimoku Kinko Hyo Cloud, but short-term volatility may increase with the Kijun-sen drifting lower. A potential bullish crossover of the Senkou Span A above the Senkou Span B keeps bulls in play, while the Tenkan-sen has flatlined. Traders should also monitor the CCI following its breakdown from extreme overbought territory. It could test the zero barrier, and if it bounces higher, price action could attempt a fresh breakout above its Ichimoku Kinko Hyo Cloud. Can bulls regain complete control over the LTC/USD and pressure this currency pair into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000+ pips per month.
Should price action for the LTC/USD remain inside the or breakout above the 87.90 to 91.80 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 90.20
- Take Profit Zone: 101.15 – 105.20
- Stop Loss Level: 82.50
Should price action for the LTC/USD breakdown below 87.90, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 82.50
- Take Profit Zone: 71.50 – 76.40
- Stop Loss Level: 87.90
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
