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    IronFX Intraday Comment | USD/RUB | 25/11/2015

    • The dollar traded higher against almost all of its G10 peers during the European morning Wednesday, ahead of the plethora US data to be released later in the day and the Thanksgiving holiday tomorrow. The greenback was unchanged against NZD and AUD.

    • The euro came under renewed selling pressure after a Reuters report showed that the ECB is considering to charge banks holding cash with it or to buy more debt at its next week meeting. ECB President Draghi and other Bank officials have said several times that they are willing to use all the tools available within their mandate to boost Eurozone’s petering economy. The risk that the market faces is that some tools the officials look at may not be in investors’ radar, and that the extent of those tools could also exceed current market expectations. As a result, EUR could remain sensitive to any similar news as we head towards Dec. 3 meeting.

    • European equity markets moved higher as the fears eased over the potential consequence of Turkey’s shooting down of a Russian fighter jet on Tuesday. The Russian President warned of “serious consequences” following the incidence and even though this not necessarily mean a military response, it could have a strong impact on the strong economic ties the two countries have. As a result, deteriorating economic conditions are likely to weigh further on the TRY and to the RUB as the tensions increase between the two sides.

    • USD/RUB traded slightly lower during the European morning Wednesday, after it hit resistance marginally below the 66.65 (R1) resistance line. The pair stands above the upside support line taken from the low of the 10th of July and above the downtrend line taken from the peak of the 4th of August. This keeps the outlook somewhat positive. However, taking a look at our short-term oscillators, I see signs that the decline may continue for a while, perhaps for another test at 64.35 (S1). The RSI follows a downside resistance line, while the MACD shows signs of topping near its own resistance line and could fall below its trigger line soon. A break below the 64.35 (S1) line could aim for the 63.30 (S2) zone and the aforementioned upside support line. On the daily chart, the pair is trading above the uptrend line taken from the low of the 19th of May. This keeps the overall trend of the pair to the upside.

    • Support: 64.35 (S1), 63.30 (S2), 62.25 (S3)

    • Resistance: 66.65 (R1), 67.35 (R2), 68.65 (R3)

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