EUR/RUB 1H Chart: Pair falls below strong support
The bearish momentum which guided the EUR/RUB exchange rate during the first part of May changed its direction later in that month. As a result, the pair formed a new ascending channel. The latest wave down from the upper channel line was guided by the 200-period (4H) SMA.
By Thursday morning, the pair had fallen below the 55-, 100– and 200-period SMAs on both the 1H and 4H charts. This suggests that some downside risks might still dominate the market this week.
The nearest support is provided by the senior channel line and the 100-day SMA at 72.50. In case this cluster is broken, the Euro is likely to target the 200-day SMA near 70.80. Conversely, a bullish reversal near 72.70 should result in a surge up to the upper channel line near 75.00.
By Thursday morning, the pair had fallen below the 55-, 100– and 200-period SMAs on both the 1H and 4H charts. This suggests that some downside risks might still dominate the market this week.
The nearest support is provided by the senior channel line and the 100-day SMA at 72.50. In case this cluster is broken, the Euro is likely to target the 200-day SMA near 70.80. Conversely, a bullish reversal near 72.70 should result in a surge up to the upper channel line near 75.00.
The common European currency has been surging against the Russian Ruble during the past two trading session. The surge was caused by the meeting of a dominant support level near the 72.60 mark.
This resulted in the formation of a junior ascending channel pattern, which on Monday was struggling to pass the resistance of a medium scale descending pattern.
However, during the second half of the day the resistance of the pattern was pierced after the currency rate found support in the various hourly SMAs and the weekly PP.