USDRUB Chart Pointing to Further Gains as Russian Ruble Sinks
USDRUB price, chart and analysis:
- A pennant pattern on the USDRUB chart suggests the pair is likely to break higher.
- This coincides with the possibility of further sanctions on Russia after the Novichok poisoning of a former Russian spy in the UK.
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Bullish USDRUB chart
The USDRUB chart is looking bullish after the formation of a pennant pattern. This is a continuation pattern as a steep rise, known as the flagpole, is followed by a consolidation period within converging trendlines. It is often followed by a breakout movement in the same direction as the original advance.
USDRUB Price Chart, Daily Timeframe (May 22 – September 6, 2018)
In this case, the flagpole arguably began on August 8, when the pair touched a low of 63.43. A break of resistance at the upper trendline, currently at 68.28, would mean a gain since then of 4.85.
With a pennant formation, the target is an equal move to the original one – suggesting a gain from 68.28 of another 4.85, lifting it to 73.13. Note too that volume was large when the flagpole was forming and has been generally a little lower since then – increasing the importance of the pennant.
This technical picture has formed as further sanctions against Russia have become increasing likely in the wake of the poisoning of a former Russian spy and his daughter in the English town of Salisbury – which the UK says was committed by two agents working for Russian military intelligence.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.