USDMYR Technical Analysis

The US dollar started to fall against the Ringgit and is trading at 4.7380 on Monday. The downward move started after the USDMYR hits its highest price since 1998 at 4.7475. The bearish move comes after many consecutive days of bullishness in USDMYR and the approach of the all-time high at 4.7750. From a technical point of view, USDMYR is in an important resistance region with a double top formation on the daily chart. Double top formations look like the letter “M” on the chart, and it shows that the buyers were unable to keep pushing the price upwards. Today’s candlestick was also able to pass below the low of Friday’s candlestick, which indicates a possible entry of bearish strength. Also, the Relative Strength Index (RSI) indicator is in an overbought region (74.01). It is possible for the USDMYR to fall to 4.6300 over the next few days where it should find some temporary support.