USD/RUB Takes A Breather After Hitting 5-Month Lows
The USD/RUB pair has finally turned green after printing four consecutive red candles on its daily chart. The outlook on the forex pair remains bearish as it has broken below a key support level. This price action is due to the falling bond yields and the recent weakness in the DXY index.
The US dollar to Russian ruble exchange rate is set to post its sixth consecutive weekly loss after a strong surge in the first half of 2023. In fact, the dollar may slide more against the ruble in the coming weeks as the next demand zone lies well below the current level.
Nevertheless, USDRUB showed a 0.16% bounce on Friday. This comes despite another 0.27% drop in the DXY index. The following chart shows that the bounce occurred just a few points above the 200 MA which often acts as a dynamic support.
If you trade USD/RUB, then you should watch closely for a reclaim of the 91.50 level which was the previous range low. In case of a failure to break above this level, I expect a retest of the demand zone which lies below 86.16.