USD/MYR Technical Analysis

The US Dollar remains sideways against the Ringgit this Thursday and is now trading at 4.2300. The recent announcement of the FOMC report has brought a more hawkish stance from the Fed. Among other things, the report showed that the members of the Committee are willing to speed up the tapering process and possibly start raising interest rates in 2022. This has the potential to increase the USD against its counterparties. Still, the market did not make big swings, in part because this hawkish tone was already expected by the market. From a technical point of view, if the USDMYR manages to break above 4.2400, it could rise to 4.2900 in a few days. On the other hand a break below the 4.1920 level may open room for a dip to 4.1390.