Ruble

Where can traders turn if they are interested in taking advantage of the move in USD/RUB? They can look west to USD/PLN, USD/HUF and USD/CZK.

First support is at Monday’s lows of 21.9563, which is also the 38.2% Fibonacci retracement from the February 7th lows to today’s highs, then the 50 Day Moving Average 21.6870. Support is at the prior high of 333.46, then Monday’s low at 323.82, which is also the 50% retracement level from the February 7th lows to today’s highs. No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. First support is at the previous high of 4.2042, then Monday’s low at 4.1046, which is also the 50% retracement level from the February 10th lows to today’s highs. This material has been prepared using the thoughts and opinions of the author and these may change. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. The chart of USD/CZK is somewhat like that of USD/PLN and USD/HUF, however there are many differences. The Ruble melted and USD/RUB screamed higher to a high thus far today at 118.125. The Central Bank of Russia conceded and said it cannot prevent the collapse of the Ruble. If price breaks into new all-time high territory, resistance is at the 161.8% Fibonacci extension from the highs of December 15th, 2021 to the low of February 7th near 349.84. However, notice that the RSI is also overbought. A reading above +0.80 is considered a strong correlation. Once Russia invaded Ukraine, there was no looking back for USD/RUB. The Bank of Russia tried to stop the bleeding of the Ruble for a few days as the pair took out all-time highs at 85.98. However, this past weekend, Russia was taken off the SWIFT financial messaging system. Notice the correlation at the bottom of the screen is +0.93. A reading of +1.00 is considered a perfect positive correlation, in which the 2 assets move in the same direction 100% of the time.