USDMYR Technical Analysis

The US Dollar pulled back slightly against the Ringgit on Tuesday and is now trading at 4.1950. After the strong breakout of the downtrend line last week, a bearish pullback is normal. Later ISM Industrial PMI data could give more strength to the Dollar if it comes in higher than expected. However, President Joe Biden’s speech may be the great definer of the market, as he is expected to pronounce on the situation in Ukraine. Despite the fact that he has repeatedly said that he does not intend to send military forces to Ukraine, the market will be watching as it is possible that he will announce new sanctions against Russia. From a technical point of view, if USDMYR manages to break above 4.2050, it will have effectively completed the downtrend line breakout pattern and could rally as high as 4.2450 in a few days.