The pair rose around 0.6% on Thursday after the CBRT cut interest rates by 250 basis points to 14%, on bigger than expected (1%) cut.
The central bank said that inflation outlook continues to improve and inflation is expected to be notably below previous projections towards the end of the year.
The CBRT added that domestic demand conditions and current level of monetary tightness, support the disinflation, describing current monetary policy stance as consistent with projected disinflation path.
Bounce through thin daily cloud after the weakness of past two days was contained by rising 55DMA, generates initial bullish signal, as the action is underpinned by 55/100DMA bull-cross and fresh bullish momentum.
Fresh bulls need to clear pivotal barriers at 5.7928 (20DMA) and 5.8061 (Fibo 38.2% of 5.9378/5.7247 descend) to signal reversal and open way for further recovery.
On the other side, recovery might be limited if it stalls under 5.7928 / 5.8061 that would keep the downside vulnerable, as negative signals generated on Wednesday’s break and close below 5.7519 (Fibo 61.8% of 5.6370/5.9378) and 5.7418 (daily cloud base) weigh.
Bearish signal will be generated on close below 100DMA (5.7177).
Res: 5.7780; 5.7925; 5.8061; 5.8312
Sup: 5.7355; 5.7247; 5.7177; 5.7000
