USDMYR Technical Analysis

The US Dollar is showing the first sign of exhaustion after several consecutive days of the bullish movement against the Ringgit and is trading at 4.7180 on Thursday. The exhaustion movement becomes evident because of the upper shadow on the daily chart candle, whose maximum price reached 4.7235 before retracting, showing strong sellers’ performance. From a macroeconomic point of view, the Building Permits data for the USD showed a slightly higher-than-expected reading, but not enough to cheer investors up. From Malaysia, Trade Balance data brought figures well above expectations, showing a strong economic recovery during the month of September (31.7B real against 17.8B forecast). Considering the data coming from Malaysia with the extensive bullish movement in recent days, it is possible that the USDMYR will start a bearish retracement over the next few days.