USDRUB and Its Prospects

How to work with this article?

One of the most underestimated currency pairs is USDRUB. The reason why these currencies are attractive is because of their dependence on oil. Another reason for the keen interest lies in their great orientation for trends - they are bounded to big drifts and changes on fundamental news reports.

Basic arguments

The main reason why the Rubble is strong now is that it has significant support from the Central Bank, which helps to avoid uncontrollable fall. Another significant characteristic to mention is the fact that the interest rates continually support spreads by creating constant drift and synchronization of the effects of external factors.

Technical arguments

Recently we could observe clear patterns of the support line at the level of 63,84 Rubbles per Dollar. It indicates a further strengthening of USD against RUB.

Big traders positions

Picture 1

Picture 1. The price chart of USDRUB and the chart of big traders for the period of 23.09.2019 - 23.10.2019.

As we can see in picture 1, the Rubble positions reached maximums a couple of weeks ago. It means that the Rubble is overbought, and we can expect further strengthening of the Dollar. Also, we can see a precise reverse figure of a double bottom.

To sum it up

Investments in such currency assets as USDRUB undoubtedly include increased risks. The general currency situation in the world indicates the strengthening of USD. So, at this moment, the majority of factors suggest that USDRUB will move up. The most rational strategy in the current situation will be keeping a moderate position with shares: 70% up, and 30% down trades.

We recommend to use the following indicators for the most efficient opening of trades:

• Stochastic
• Bollinger Lines