Analysts at Rabobank, point out the USD/RUB broke above a key resistance and pivot level at 67.00, giving positive signals for the US dollar.
Key Quotes:
“Essentially, current global environment is not conducive for risky assets and favours the US dollar.”
“After forming an important base around the 1170 level, the Bloomberg Dollar Index regained upside momentum in September (wave I) and produced even stronger gains in October (wave III) followed by a corrective move lower at the beginning of November (wave IV) (…) Unless we witness a sharp pullback, there is scope for the dollar to extend its gains towards the Fibonacci 76.4% retracement at 1240.46 in the coming weeks/months. Such a bullish scenario technical scenario – underpinned by widening in the interest rate differentials (as the Fed continues to hike at the time when other major banks are reluctant to do so), the trade war, concerns about Brexit and fiscal policies in Italy – does not bode well for the CEEMEA currencies.”
“Gains in oil are not sufficiently high to expect USD/RUB to reverse its bullish breakout above technical pivot at 67.0939 last week. The initial target is set around 68.40 before the September high at 70.8422 comes into focus should the dollar maintains its bullish momentum.”
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