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USD/RUB Short on Technical Analysis

December 21, 2015 (Last updated on December 30, 2015) by

I know, it has been only three days since I have closed my USD/RUB buy, but I have just went short on USD/RUB based on some pretty evident technical analysis factors. The currency pair is consolidating inside the ascending triangle on the weekly chart. During two previous instances of USD/RUB hitting the upper resistance (January and August), the pair retreated back to the lower trendline. I expect the same retracement this time too:

Shorting USD/RUB Based on Technical Analysis at the End of 2015

I have used a market order to execute the trade and have got in at 71.1087 rubles per dollar. I have a hard stop-loss at 72.05 and a hard take-profit at 67.12 but I will also consider exiting by timeout (if the currency rate leaves the ascending triangle) or by a trailing stop-loss. Also, the position size I use here is a good deal lower than I usually use on my USD/RUB trades.

PS: I know, the trade might look like a suicide considering the recent trend in oil and the overall situation in the Russian economy, but it is a technical analysis setup that should be over in a few weeks, not a long-term buy-and-hold type position.

Update 2015-12-30: The trade hit a stop-loss on December 28 at 9:51 GMT as the currency pair broke through the upper border of the triangle:

Shorting USD/RUB Based on Technical Analysis at the End of 2015 - Stop-Loss Hit

If you have any questions or ideas regarding the trade opportunity in USD/RUB currency pair, please feel free to post them using the commentary form below.

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