USDMYR Technical Analysis

Although the US Dollar has made a bullish move against the Ringgit, at the moment it has not been able to break above the resistance on the daily chart at 4.2050. The US Dollar has appreciated since the beginning of the week in a possible anticipation of the interest rate hike for the USD on March 16th. The forecast is that the FED will raise the rate to 0.5% and this has the potential to drive the USDMYR higher in the short to medium term. An alternative scenario would be the possibility that the market has already priced in this rise in interest rates and when the announcement of the increase actually comes out, the USDMYR falls. This second scenario is possible, albeit less likely. From a technical point of view, if USDMYR manages to close the day above 4.2060, it could show an important entry of buying strength that could push the price up to 4.2450. For the price to fall down, it would need to close below the support point at 4.1730.