The USD/RUB has seen a sharp move higher since late last night, when it became clear Russia is undertaking offensive military operations in the Ukraine.
The USD/RUB briefly hit the 90.000 value juncture early today after Russia officially acknowledged that military actions are underway in the Ukraine in a broad manner late last night. As of yesterday, the USD/RUB was trading near the 81.500 vicinity, which was last seen in November of 2020. However, last night’s late military developments have shaken financial markets globally and the Russian ruble has certainly reacted via nervous sentiment as its stands in the center of the geo-political storm financially.
Speculators who are tempted to trade the USD/RUB first should check to see if their brokers are going to allow positions to be pursued in the near term. Trading houses may take the decision that current circumstances make the trading of the USD/RUB too volatile and carry too many risks for their clients and their own institutional infrastructure financially. As of yesterday, Russian bonds continued to be traded internationally, but their trading too may come under strict mandates near term. In other words, some brokers may not allow the USD/RUB to be traded near term.
Global financial markets have been shaken and the major equity indexes are exhibiting a vast sea of red as they trade lower, and future markets too are showing extreme nervousness. Gold has risen in value. The USD/RUB is within a firestorm and its dramatic rise early today is a clear indication financial institutions are scared and trying to figure out what will come next. The problem for the USD/RUB is if military developments continue to escalate, this will certainly create a dangerous amount of rhetoric from governments who will potentially increase threats of new economic sanctions against Russia.
Traders who have the stomach to pursue the USD/RUB today or a need to make transactions should understand spreads between asks and bids will certainly widen. Resistance for the moment may appear to be the 90.000 juncture and support may be interpreted around the 84.000 to 83.000 levels. However, trading when it is possible between the USD/RUB is certain to be fluid and unexpected spikes will pervade its price quotes near term.
If a trader can take a position in the USD/RUB and has the determination to speculate on direction, buying the USD/RUB may be the logical short term endeavor. However, buying positions should likely only be considered after reversals lower have occurred to technical support levels. Also entry price orders are not only recommended, they are urged. The USD/RUB is likely to be extremely volatile in the days to come. If the USD/RUB breaks above 90.000 and sustains value above this ratio, another leg up could develop. Stop loss orders are also highly encouraged for all traders.
Russian Ruble Short-Term Outlook
Current Resistance: 88.950
Current Support: 85.900
High Target: 91.240
Low Target: 82.10
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