Ruble bulls watch out

Ruble is the best performing currency so far this year, up close to 14% against dollar.

• However levels and price pattern suggests that bulls might be getting exhausted after long rally since January end this year.
  
  
• Ruble might go for consolidation phase for now, as bears remain at large at levels around 50. Breaking it will not be an easy task for the bulls.
  
  
• Ruble is currently trading at 52 against dollar, showing early signs of a bounce back after making low around 50.2.

Fundamentals remain on weaker side for Russia. Last year's massive slide of Ruble and oil price have put strains on the economy, signs of which are still showing up. Geo-political tensions over Russia showing no signs of ablation.

• After weaker Ruble created havoc last year for Russian economy, stronger ruble this year putting pressure on Russia's budget by reducing oil revenues in local currency.
  
  
• Monday, Russia announced that it will resume sell of S-300 systems to Iran. It is an advanced missile defense system which has been put to halt since 2009, due to intense diplomatic pressure from US and Israel.

Russia's confrontation with major Geo-political powers keep the possibilities of further sanctions from US and also European Union.

European Union will be voting for renewal of sanctions to Russia, by mid of this year, which vetoed by anyone namely Greece will be very influential for currency movement as well as geo-politics.