USDMYR Technical Analysis

On a day of low volatility the US Dollar is down just -0.06% against the Ringgit and is now trading at 4.6140. The day of low volatility comes due to the market’s concern about the interest rate decision for the USD tomorrow. As of yesterday about 76% of experts believed that the Federal Reserve (FED) would keep the USD interest rate unchanged at 5.25% per annum. Today 90.8% of experts believe the FED will not raise interest rates in tomorrow’s meeting. If this actually happens, it will mark a new era in the FED’s position on the US economy, as in the last 10 meetings, the FED has chosen to raise interest rates to contain inflation. The effect of keeping the interest rate unchanged will be that the USDMYR may decline over the next few days. From a technical point of view, today’s candlestick marks a possible lower top than the previous one and if the price manages to break below the 4.5980 level, the USDMYR could drop as low as 4.52500 in a few days.