The bearish trend in the USD/RUB ran into a rather hard wall last Friday, when the meeting between Ukrainian President Zelensky and President Trump went off the guard rails causing buying.
The USD/RUB is near the 89.6800 level at this moment. The USD/RUB was trading at a low around the 86.6000 vicinity much of last Wednesday and Thursday. And then what was supposed to be a calm moment in the U.S White House with President Trump and President Zelensky discussing a mineral rights agreement, instead turned into loud political drama. Global Forex was shaken by the bewildering argument in the Oval Office and the USD/RUB was clearly effected by the turmoil.
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Interestingly, day traders need to understand something additionally important, the USD/RUB certainly saw buying as the currency pair went higher, but the price velocity was not violent. Somehow calmer heads have remained in the USD/RUB and the 90.0000 level has been acting as rather intriguing resistance.
Near-Term and Mid-Term Outlooks for the USD/RUB
The lack of a violent surge higher in the USD/RUB shows that financial institutions are still counting on some type of resolution to unfold which will help the Russian economy. While the Ukraine – Russia war is certainly of importance, financial institutions are making decisions based on mid-term outlooks regarding not only the political landscape, but the economic landscape too. If the 90.0000 level continues to demonstrate reversals lower, this will be a sign big players are still working with an optimistic framework.
Near-term drama is definitely ahead for Ukraine and Russia. Day traders who feel the urge to speculate on the USD/RUB know more surprises are guaranteed. While political dialogues are supposedly being conducted between diplomats, there is no way to know for certain what is being communicated behind closed doors. Financial institutions trading the USD/RUB are likely working with some guidelines, but they are also betting on unknowns. Traders of the currency pair need to be careful.
Lower Momentum and Cautious Optimism
Last Friday’s disagreement in the White House caused an immediate reaction. However, while global markets are still showing signs of nervousness, some large players may see opportunities. The ability of the USD/RUB to touch lows early last week which had not been traversed long-term was not a surprise, what is a surprise to some is that the USD/RUB has not seen a huge reversal higher.
- Somehow the USD/RUB remains in rather stable territory, taking into consideration that a potential peace agreement took a few step backwards for the time being between the Ukraine and Russia.
- Speculators who want to trade the currency pair should be cautious because news developments are certain to be heard in the coming days.
- Perspectives on the USD/RUB still seem to be positive via bearish mid-term outlooks, can the optimism hold?
USD/RUB Short Term Outlook:
Current Resistance: 90.0000
Current Support: 89.2000
High Target: 90.1050
Low Target: 88.7000
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