- The USD/RUB has gained 6.44% in the last three days.
- Separatist leaders sought recognition from Russian President Putin, which could undermine talks between Russian and US officials.
- USD/RUB Technical Outlook: Escalating conflict could fuel a jump to 80.41, followed by 80.95.
The USD/RUB It is up 1.54% during the American session, trading at 78.81 at press time. The mood of the financial markets is oscillating thanks to the high tension in the conflict between Russia and Ukraine, while investors put economic information and fundamentals aside until the conflict is resolved. The former caused a jump in crude prices, with Brent oil at $92.03 per barrel, while Western Texas Intermediate (WTI) is trading at $90.78 per barrel.
Russia-Ukraine conflict updates
The latest developments in the Russia/Ukraine conflict keep the markets uncertain. Leaders of the Donetsk and Luhansk regions called on Russian President Vladimir Putin to recognize them as independent republics when a Sputnik correspondent reported that artillery fire was “heard” at Donetsk airport.
Meanwhile, Russian President Vladimir Putin said that Ukraine does not plan to comply with the Minsk Agreement. As a result, Putin said that Russia should consider recognizing the independence of those two regions in eastern Ukraine.
Analysts suggest that any acknowledgment of the latter could also undermine the prospects for peace talks between Russian and US officials, due to take place on February 24 in Geneva, as Russian Foreign Minister Lavrov commented that plans to meet with US Secretary of State Blinken.
It is worth noting that Russian banks imported $5 billion worth of foreign currency in December, as it anticipates a possible surge in demand for non-Rub banknotes.
So if no resolution is reached, that would be a hurdle for the RUB. In addition, the sanctions imposed on Russia may cause a significant depreciation of the RUB against the USD, pushing the USD/RUB exchange rate towards the highs of January 2016 at 85.98.
USD/RUB Price Forecast: Technical Outlook
USD/RUB has risen 6.44% in the last three days, threatening to hit a year-to-date high of 80.41. Furthermore, the weekly moving averages are well below the exchange rate, in a bullish order, with the shorter timeframes above the longer ones.
The first resistance of the USD/RUB would be the yearly high at 80.41. A breach of the latter would expose the November 2020 highs around 80.95, and then the March 2020 highs at 82.86.
Additional technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
