Good day!

Russian ruble remains flat right next to the 65 level. So far, the levels of market interest are 67.00 and 63.70. A kind of trading range has formed for now, and the asset could pull back away from it:

1.png

Доллар США / Российский рубль – US Dollar / Russian ruble

Based on the latest reports by COT CFTC, large operators keep expanding their short positions on the Russian ruble, and heavily buying the assets at the same time. So, based on the size of large operators net long position, it’s either a correction about to happen or trend shall reverse and weaken the Ruble. We assume that the last option is quite attractive and more likely given the current state of the market and trade war. There is the potential that this is the only beginning with plenty more things to come:

2.png

Крупные спекулянты – Large operators

Хеджеры - Hedgers

The cross rate of EUR/CHF pulled back from the upper boundary of daily range and reached its lower boundary again. We assume that now, the asset’s price should pull back up, right inside the flat. Here we should consider the candlestick formations, which will shine more light onto the situation. The flat could remain long but not forever. Also, at some point, the current trading range will quickly get broken down. It’s also important to remember that the Swiss Central Bank really wants the EUR/CHF rate as high as possible:

3.png

American stock index S&P500 could still potentially pull back from the 2720 level. Although there is currently an inverse head and shoulders pattern with an unusually high left shoulder visible on the chart (usually shoulders are half the size of height of a head). Therefore, the asset’s price may resume the drop from the neckline:

4.png

Please note that this material is provided for informational purposes only and should not be considered as investment advice. Trading in the financial markets is very risky.