USD/RUB Price Analysis: Ruble retreats from 20-DMA but bulls stay hopeful
- USD/RUB fades bounce off fortnight low, snaps four-day downtrend.
- MACD flashes record bearish signal on D1, 124.20-25 appears tough nut to crack for buyers.
- One-month-old ascending trend line adds to the downside filters.
USD/RUB bulls struggle to keep reins around 109.50, despite printing the first daily gains in five during Wednesday’s Asian session.
The Russian ruble (RUB) pair dropped to the lowest levels since March 04 the previous day before taking a U-turn from the 20-DMA.
The rebound, however, fails to gain support from the MACD as it prints the biggest bearish signal in the last few weeks.
Also challenging the USD/RUB buyers is a convergence of the 10-DMA and a one-week-old resistance line, around 124.20-25.
If at all the pair rises past 124.25, it can quickly rise to 140.00 before challenging the record top, also the monthly peak, surrounding 155.00.
On the contrary, a daily closing below 20-DMA level of 106.10 will direct the USD/RUB prices towards an ascending support line from mid-February, near 96.00 at the latest. It's worth noting that the 100.00 threshold will act as an intermediate halt during the fall.
In a case where USD/RUB breaks the aforementioned support line, the odds of witnessing a fresh monthly low, currently around 89.40, can’t be ruled out.
USD/RUB: Daily chart
Trend: Bearish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
