USD/MYR Technical Analysis

The Dollar has slightly moved against the Ringgit this Tuesday in a low volatility day. The market is moving sideways in anticipation of the most important macroeconomic event in the last days, the FED’s decision about the interest rates for the Dollar, due later this Wednesday. Although there is little chance of change in the interest rate, the market is more concerned about the FOMC decision on whether or not they will change the monetary policy, withholding the current 120 billion dollars in economic stimulus every month. Should this stimulus be withheld or even diminished, the whole market will understand this as a change in the monetary policy and that will probably be bullish for the Dollar. If this scenario occurs, the USDMYR could easily go to the 4.1700 level. If the FOMC does not change anything in the 120 billion dollars stimulus, the USDMYR could keep falling to the 4.0950 level.