USD/RUB (U.S. DOLLAR/RUSSIAN RUBLE)

Russian ruble is another emerging market currency that has lost ground against the U.S. dollar. Over the past 9 months cross rate completed an inverted head and shoulder pattern with the neckline acting as resistance at 31.80 levels. Inverted head shoulder is regarded as a bullish reversal pattern. We are now seeing USD/RUB breaking above the resistance at 31.80 levels. With a stop-loss slightly below 31.80 we should follow this cross rate to move higher favoring U.S. dollar. Inverted head and shoulder price target will be 33.70 in the medium-term.