On July 2nd we published “USDRUB ready to resume the uptrend”, saying that “having the wave structure and the Fibonacci level in mind, we expect that corrective channel to be broken to the upside soon. If this is the correct count, USDRUB may exceed the top of 36.716.” The next chart will show you how the USD RUB exchange rate looked like, when we made that forecast.
From the position of the Elliott Wave Principle we had all we need to form a bullish expectation. It was a textbook example of the 5-3 Elliott Wave cycle. Now let’s see how the situation developed during the past two months.
As you can see, the 61.8% Fibonacci level provided a strong enough support for the US dollar to start rising against the Russian ruble. Yesterday, on August 28th, the USD RUB forex pair went to a new high above 36.716, thus reaching our minimum target. Looking back to the beginning of July, we may say this is an excellent example of the Wave Principle’s ability to recognize new trends in their early stages, which is exactly what every trader needs, right?
