USDMYR Technical Analysis

The US Dollar continues to rise against the Ringgit on Tuesday and is now trading at 4.4170. The recent bullish move follows the announcement of US inflation last week, which brought a higher-than-expected reading. Current inflation is the highest in 40 years and, contrary to what Fed leaders have been saying constantly, it shows no signs of being transitory. Last week, for the first time, US Treasury Secretary Janet Yellen admitted that inflation could last longer than initially expected. All this puts even more pressure on the Fed, which is expected to accelerate its pace of interest rate hikes over the next few meetings. From a technical point of view, as USDMYR is breaking out of the resistance region at 4.4000, it is likely to rally to 4.4450, which is the highest price since 2017.