- The U.S and Russia conducted face to face discussions regarding the Ukraine war yesterday.
- This USD/RUB has reacted with an incremental amount of selling.
- As of this writing the USD/RUB is around the 91.2300 ratio, but day traders need to remain aware that the differential between bids and asks are large meaning the current market rate is shifting quickly and entry price orders must be used to pursue the currency pair.
On the 2nd of January the USD/RUB was over the 110.0000, the ability of the currency pair to traverse downwards is not because of an economic miracle taking place in Russia. The nation still faces difficult economic circumstances. The change in value for the USD/RUB have been taking place because of a shift in behavioral sentiment that cannot be ignored.
USD/RUB and Fair Equilibrium
Day traders should note that the downturn in the USD/RUB has not happened with violent price velocity. The absence of a significant drop shows that financial institutions are likely approaching the trading of the USD/RUB with diligent thinking. The question for day traders pursuing wagering positions is where fair equilibrium for the USD/RUB will find a resting ground. Reversals higher are still being seen and speculators cannot bet blindly on a continuous path lower.
The USD/RUB did break through the 90.0000 support level last Thursday and Friday for the first time since September 2024. The USD/RUB reversed higher after Friday’s lows and the 92.0000 vicinity saw a test slightly above going into the weekend, followed by this Monday and yesterday’s trading. But resistance proved to be rather interesting and the lower realms of the USD/RUB are back within sight as of this writing.
Lack of Transparency and Trading the USD/RUB
Only limited trading volume exists within the USD/RUB trading. Transparency is also at a minimum. What traders pursuing the USD/RUB who do not have inside knowledge of the currency pair need to do is ride on the coattails of financial institutions. However, importantly speculators of the USD/RUB can also monitor news developments regarding the dialogue to potentially try and negotiate an end to the Ukrainian/ Russia war.
- Betting on the outcome of the talks is not easy, but the fact that public conversations and insights are being shared likely firms the attitude of financial institutions that perhaps more optimistic days are ahead for the Russian Ruble.
- This notion may help create some more incremental bearish price action in the USD/RUB.
- Risk management is essential for speculators of this currency pair because circumstances can change quickly.
USD/RUB Short Term Outlook:
Current Resistance: 91.9500
Current Support: 91.1000
High Target: 92.4000
Low Target: 90.0100
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