The US Dollar is up 0.54% against the Ringgit on Tuesday and is now trading at 4.2530. The recent bullish move is due to the Fed’s statements about US inflation, the highest since 1981, and how the Fed is willing to use all the tools at its disposal to maintain price stability. These more hawkish speeches are in line with the possible upward trend in interest rates and the market is already starting to price this hike in the interest rate. This upside break of 4.2500 level is the most important breakout of a resistance on the daily chart since August 2020. If buying force holds above this level, the next resistance area is at the round number of 4.2900. From a technical point of view, a pullback to 4.2450 is possible before the price resumes its bullish structure.
