USDRUB has breached key support and is heading towards the 60.00 area, say David Sneddon, Pascal Zingg and James Gilbert at Credit Suisse in London.

Sneddon and his team point out that USDRUB has fallen below 64.85/83, a significant level that comes from i) the 38.2% Fibonacci retracement of its 2018 rally and ii) the October low. As such, the currency pair has established a large flagged top and the broader trend has turned bearish (see Chart).

The next support level comes from the 50% retracement at 63.03, ahead of the 61.8% retracement at 61.23. Taking the big picture, Sneddon and his team say the measured top objective is set significantly lower at 59.06.

See Chart.