The USDRUB is trading higher today after the Chairman of the US House Committee on Intelligence called for US to place sanctions on Russia following reports that Russia paid bounties to the Taliban for killing US troops in Afghanistan.
Adam Schiff, a Democrat who currently serves as the House Intelligence Committee Chairman, told reporters that sanctions to deter Russia’s “malign activities” should be considered.
The US and Russia have had an on and off relationship since President Donald Trump took power, with diplomats being expelled on both sides after accusations of espionage emerged. The latest reports have raised new tensions, as the US presses for more information on the allegations, which could further strain relationships between both countries.
Technical Outlook for USDRUB
Today’s upside marks the 3rd straight day of gains for the greenback as the Rouble remains pressured by the latest diplomatic standoff and topsy-turvy oil prices. The USDRUB has cleared the 70.611 resistance and looks set to approach 71.981, which is where the previous lows of 13/16 March and highs of 22 May also meet the 50% Fibonacci retracement from the 10 January lows to the 18 March highs. A break above this level brings 72.802 into focus as a potential upside target, with 74.602 (38.2% Fibonacci retracement) and 75.487 (highs of 9 March to 17 March) lurking close-by as further targets down the road.
On the flip side, rejection at 71.981 could allow for a retest of the 70.611 broken resistance, which will now serve as a new support. A breakdown of this area targets 69.25 (61.8% Fibonacci retracement) and 68.00, site of the double bottom pattern.