The USD/RUB has continued to demonstrate a rather remarkable bearish trend lower as the currency pair is now traversing values last seen in January of this year.
- The USD/RUB currency pair is near the 88.9800 ratio as of this writing with fluctuations on full display.
- The currency pair continues to create downwards momentum as the Russian Ruble trades in a rather correlated manner with the broad Forex market.
- The USD/RUB is trading within terrain that was last seen in late January of this year.
- The ability of the Russian Ruble to produce strength is certainly not a surprise to large players in Forex who have a sense of the international economic realities that shape our world.
- A low of 87.3790 was momentarily seen yesterday in the currency pair.
After hitting a high of nearly 91.6640 last Friday, the USD/RUB then generated power lower again, and not only returned to the important trading levels around 90.0000, but then demonstrated enough strength to penetrate lower and by this Monday was challenging the 89.0000 ratio. Early trading this morning has seen the 89.5560 resistance level tested, but the USD/RUB again has been able to display selling power.
USD/RUB Behavioral Sentiment and the 89.0000 Level
The ability of the USD/RUB to continue to produce incremental price movement lower has developed as financial institutions have shifted their behavioral sentiment towards a more dovish Federal Reserve outlook for the mid-term. Trading volumes in the Russian Ruble are difficult to know due to a lack of transparency, but the currency is certainly being traded and its official exchange rate is showing heath.
Tomorrow’s U.S Gross Domestic Product results should be watched by USD/RUB traders because it will definitely impact the broad Forex market, which in turn will influence the currency pair. However, traders should also pay attention to the coming OPEC meetings which will start on the 2nd of June. While Russia is not an OPEC member it does have a strong amount of communication with the energy cartel because of the scope and power of Russia’s Crude Oil and Natural Gas production levels. A steady price in energy is important for the Russian economy and the Ruble.
USD/RUB Support Levels in Sight and Speculative Decisions
The USD/RUB has been able to generate a sizeable bearish move since trading near the 94.4275 mark on the 1st of May. The ride lower in the USD/RUB has matched many other major currencies. Speculators of the USD/RUB likely have intriguing reasons for wanting to wager on the currency pair, knowledge is power.
- Trading in the currency pair remains challenging due to a lack of transparent data, but the USD/RUB’s ability to move in step with the global Forex market cannot be denied.
- Traders should be careful before the U.S GDP numbers on Thursday, and Friday’s PCE Price Index inflation figures.
USD/RUB Short Term Outlook:
Current Resistance: 89.0020
Current Support: 88.7900
High Target: 89.7500
Low Target: 87.4990
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