USDRUBForex Trade Idea Description:
Currency Pair: USD/RUB
Timeframe: 4 Hour
Trade Setup:
Entry:
Look for a bearish breakout below the 80.00 support level. Confirmation of entry can be taken from a sustained move below this level with increased trading volume. An alternative entry could be considered on a retracement back to the 80.00 level after the initial breakdown, confirming it as new resistance.
Stop Loss:
Place the stop loss just above the recent swing high or the 81.50 level to protect against a false breakout. This ensures a limited risk if the trade moves against the initial direction.
Take Profit:
Set the initial take profit at 78.00, where the next significant support level lies. For a more aggressive target, consider trailing the stop loss to lock in profits while aiming for the 76.00 psychological level.
Risk Management:
Risk no more than 2% of the trading account on this trade. Adjust position size accordingly to ensure the stop loss level aligns with the 2% risk threshold.
Technical Analysis:
The USD/RUB pair has been in a downward trend, evidenced by lower highs and lower lows on the 4-hour chart. The RSI indicator is showing bearish momentum, while the moving averages are aligned in a bearish configuration (20 EMA below 50 EMA). The breakdown below 80.00 suggests further bearish continuation.
Fundamental Analysis:
The Russian Ruble has been supported by higher oil prices and recent economic stability in Russia, while the US Dollar has been pressured by geopolitical tensions and potential rate cuts by the Federal Reserve. This macroeconomic backdrop favors the USD/RUB bearish outlook.
Trade Plan:
1. Monitor the price action around the 80.00 level.
2. Enter short on a confirmed breakdown below 80.00 or on a successful retest.
3. Place stop loss at 81.50 to manage risk.
4. Set take profit targets at 78.00 and 76.00.
5. Adjust trade management based on market conditions and ensure disciplined risk management.
Disclaimer:
This trade idea is for informational purposes only and does not constitute financial advice. Traders should conduct their own analysis and consider their risk tolerance before entering any trades. Forex trading involves significant risk of loss and is not suitable for all investors.
