USD/MYR Technical Analysis

The Ringgit has been moving sideways against the US Dollar for the past few days and is now trading at 4.2370. The latest FOMC report, released on Thursday, brought the information that FED presidents are beginning to talk about cutting the financial stimulus (currently at $120 billion a month). Once they cut the financial stimulus, the next step will be to raise the interest rate. This information has caused a significant rise in the Dollar against most of its counterparties. Investors continue to feel indecisive in the face of new Covid-19 cases in the US and in the rest of the world, but when it comes to Malaysia, concerns are about the political landscape since the resignation of the prime minister. From a technical point of view, if the USDMYR breaks above 4.2400, it could rise to 4.2860 in a few days. On the other hand, if it breaks below the 4.2150 level, it could drop to 4.1750.