The Ruble continues to gain traction against the US Dollar, posting 0.37% gains against the greenback on the back of rising crude oil prices.
Brent crude is up 0.10% as of the time of writing, extending gains on the black gold for the 7th straight session. This has helped propel the oil-linked Ruble forward, at the expense of the greenback which finds itself on the back foot following renewed talks of stimulus passage by the US Congress.
Another factor starting to play out in the price action could be an attempt to benefit from the carry trade. An interest rate differential of 4.15% exists on the pair, tilting bids towards the higher-yielding Ruble.
Technical Outlook for USDRUB
The breakdown of the rising wedge on the daily chart of the USDRUB pair has found support at the 73.919 price mark. This point marks he projected price target for the measured move. However, a breakdown of this price level (which could occur if crude oil prices keep rising) could open the door towards the 72.802 support. Full resumption of the downtrend could accompany a drop below 72.802, targeting 71.981 or 70.611.
On the flip side, a bounce from the present support could allow the USDRUB push towards 74.52, with 75.48 and 75.974 serving as additional targets to the north.
USD/RUB Daily Chart