The US Dollar is up +0.3% against the Ringgit on Monday and is now trading at 4.6520. Despite the upward movement, the main market sentiment is one of indecision since today’s candlestick failed to break above or below the lateralization of the last few days. From a technical point of view, USDMYR is stuck between the resistance at 4.6550 and the support point at 4.6370. If the price breaks above the resistance, it could move up to 4.6850 in a few days. On the other hand, if the price manages to break below the support, it could drop as low as 4.5750. Investors should pay attention to the release of the ADP Nonfarm Employment Change data to be released on Wednesday, as this indicator is seen as a preview of the Nonfarm Payroll. The market’s expectation is that the US is returning to the path of inflation, which may open space for more restrictive monetary policies and an increase in interest rates in the next meetings. If this indeed happens, USDMYR could resume its bullish movement on the daily chart.
