USDMYR Technical Analysis

The US Dollar was lower against the Ringgit on Friday and is now trading at 4.4510. The downward movement comes after the release of GDP data in the US, which brought a reading well below expectations (-0.9% real against +0.5% forecast). As the previous reading had been negative (-1.6%), this puts the US in a technical recession, because of 2 consecutive quarters of negative GDP. The market reacted badly to the GDP news because yesterday the president of the Fed, Mr. Jerome Powell said he didn’t believe the US was in recession because of the job market, which is at historically low levels. From a technical point of view, the candlestick on the daily chart signals an entry of bearish strength and if the price manages to break below 4.4475, it can drop to 4.3650 in a few days.