USD/RUB: Descend to recover before another attack to the summit – Rabobank

USD/RUB produced a parabolic move higher driven by the precipitous fall in oil prices. Such sharp moves tend to be followed sharp pullbacks before another leg higher unfold, analysts at Rabobank apprise.

Key quotes

“The USD/RUB climbers may retreat to the base camp around the 75.500 level to regain their strength. If conditions deteriorate further for them, they may have to descend further towards the 69.8181-70.842 area.”

“This should be interpreted as a tactical retracement followed by another attack to reach the top which is at around the all-time high at 85.9573.”

“This is based on a very cautious assumption that the coronavirus will last globally for up to 3 months. If severe restrictions imposed across the globe last much longer, USD/RUB could set a new record top.”