After reversing higher at the end of October, USD/RUB is now moving higher, while trading above a short-term tentative upside support line taken from the low of October 26th. Last week, the pair also managed to overcome a medium-term downside resistance line taken from the high of April 7th. As long as the rate stays above both of those lines, we will continue aiming higher overall.
In order to get more comfortable with the upside scenario, a push above the 73.603 barrier, marked by the highest point of September, would be needed. Such a move would confirm a forthcoming higher high and may drag the rate towards the 74.584 zone, which is the highest point of August. If the buying doesn’t stop there and the USD/RUB jumps above that zone, the next possible target could be at 75.354, marked by the highest point of July.
Although the RSI is pointing slightly lower, it continues to run above 50. The MACD is pointing slightly to the upside and sits above zero and the trigger line. The two oscillators show positive price momentum, which supports the above-discussed scenario.
Alternatively, if the rate falls below all of the previously mentioned trendlines and also drops through the 71.154 hurdle, marked by the inside swing high of November 10th, that could lead to some lower areas, as some bulls might flee the field. USD/RUB could move to the 70.505 hurdle, a break of which may set the stage for a move to the 69.211 level. That level marks the lowest point of October.
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