Rouble starts May on the Back Foot

If you follow us for some time, that should not be a surprise as we were anticipating this action for quite a long time. Before we will get any deeper into the situation on the EURRUB and USDRUB, we will focus on the instrument, which is more familiar to the majority of traders – USDCHF.

Dollar to Frank made a beautiful Price Action movement – tested broken resistances as a support. That was also expected by us and we warned about this possibility many times in our previous videos and articles. The style of that was brilliant. The price made a fast contact with two supports and then bounced rapidly creating a V shape reversal. Odds for a further rise are currently much higher.

Now Rouble. EURRUB bounced from the crucial long-term horizontal support (orange) and went higher breaking the dynamic (blue) and horizontal (green) resistances. The current target is the yellow area around 74. We should get there pretty soon.

USDRUB is also bullish. Here, the price created the double bottom formation and broke the upper line of the wedge pattern. In addition to this, buyers managed to break the 38,2% Fibonacci. Price closing a day above the orange area will be a nice signal to go long.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis