USD/MYR Technical Analysis

The US Dollar was flat against the Ringgit on Thursday and is now trading at 4.1900. The lateralization of the last few days is largely due to the decision on the interest rate for the US Dollar. With US inflation at its highest in 40 years, analysts were expecting the Fed to raise interest rates at its Wednesday meeting. However, the interest rate remained unchanged, and the FED said that it will consider the possibility of an increase at the next FOMC meeting in March. From a technical point of view, the USDMYR is in a downtrend, but sitting on the 200-period Moving Average, which tends to work as a support. In the short term, if USDMYR manages to break below the 200-period Moving Average, it could pave the way for it to fall to 4.1375 and 4.0950. The downtrend is likely to continue until the Fed decides to raise the interest rate to the USD.