- USD/RUB extends week-start reversal from 21-DMA resistance, holds lower grounds near intraday bottom of late.
- Downside break of three-month-old rising trend line, bearish MACD signals also favor Russian Ruble buyers.
- 50-DMA puts a floor under USD/RUB price as US CB Consumer Confidence looms.
USD/RUB remains depressed for the second consecutive day around the 93.00 threshold heading into Tuesday’s European session. In doing so, the Russian Ruble (RUB) pair defends the previous day’s U-turn from the 21-DMA, as well as keeps the last week’s retreat from a three-month-old previous support line.
Adding strength to the downside bias are the bearish MACD signals and the US Dollar’s weakness ahead of the US Conference Board’s (CB) Consumer Confidence Index for August, expected at 116.2 versus prior 117.00.
However, the RSI conditions suggest limited downside room, which in turn highlights the 91.80 support confluence comprising the 50-DMA and 38.2% Fibonacci retracement of the May-August upside.
Even if the USD/RUB pair drops below 91.80, July’s low of near 88.90 and 50% Fibonacci ratio of around 88.65 will act as additional checks for the sellers before giving them control.
Meanwhile, the 21-DMA and the support-turned-resistance guard the short-term USD/RUB rebound near 95.30 and 96.70 in that order.
Following that, the 100.00 psychological magnet will act as the final defense of the Russian Ruble bears before highlighting the pair’s latest peak of around 102.35.
USD/RUB: Daily chart
Trend: Further downside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rises toward 1.0800 on USD weakness
EUR/USD trades in positive territory above 1.0750 in the second half of the day on Monday. The US Dollar struggles to find demand as investors reassess the Fed's rate outlook following Friday's disappointing labor market data.
GBP/USD closes in on 1.2600 as risk mood improves
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold holds on to modest gains around $2,320
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Three fundamentals for the week: Two central bank decisions and one sensitive US Premium
The Reserve Bank of Australia is set to strike a more hawkish tone, reversing its dovish shift. Policymakers at the Bank of England may open the door to a rate cut in June.