The US dollar is up +0.11% against the Ringgit on Wednesday and is now trading at 4.6430. Despite the bullish movement from the opening of the day, the USDMYR shows strong signs of rejection of selling force on the daily chart. Rejection is a concept characterized by an entry of directional force at the beginning of the day, but which throughout the day is replaced by the opposite force. In today’s case, the market went all the way up to 4.6590, only for sellers to take control of the situation and push the price lower to the 4,6430 level. This formation characterizes a possible exhaustion of buyers and may make room for a possible downward movement in the coming days. Selling strength will be confirmed if the price manages to break below 4.6350. If that happens, USDMYR could drop as low as the 4.5250 region in a few days, where it should find a major support point on the daily chart.
