EUR/RUB 4H Chart: Channel Up
Updated
The common European currency is surging against the Ruble in an ascending channel pattern. Although the pair has already bounced off the upper trend line of the channel, it has not begun to form a new short term descending pattern. Instead the Euro found support in the 38.20% Fibonacci retracement level at the 67.71 level against the Ruble. As a result a surge began, which is reaching for the next Fibonacci retracement level above the 0.72 mark. However, market participants should be careful, as a decline of the pair, before reaching the retracement level, is a highly possible scenario.
Trade closed: target reached
The long for the upper trend line of the pattern worked. However, the resulting change in direction had enough momentum to eventually break through the lower trend line of the pattern.
It also has to be mentioned that it seems and is confirmed by this and another pattern that the EUR/RUB trend lines have to be drawn by using the high and low levels of the candles rather than opening and closing prices.
Note
Note
Recently the common European currency made a rebound against the Russian Ruble. Due to that reason a review of the pair was done. It can be observed that the currency exchange rate rebounded due to a support line, which can be mapped by connecting the August low levels. Meanwhile, if one uses the late August high to draw a parallel line, a speculative channel can be drawn.
Most likely in the short term the currency pair will surge up to the 200-period SMA, which on Monday was located at the 69.30 mark. However, the resistance was approaching a strong resistance cluster near the 69.50 mark.
Note
Another update..The pair has bounced off the combined support of the two patterns. It actually occurred exactly at the crossroads.
We remain bullish on the pair. However, the past week has actually seen almost horizontal trading, as if the markets are expecting something fundamental to happen.
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