USDMYR Technical Analysis

The US Dollar rose +0.11% against the Ringgit this Monday and is now trading at 4.6870. Despite the upward movement, the main sentiment behind USDMYR is indecision, as the last few candles on the daily chart have seen shadows build up to the upside, showing that sellers are preventing the price from continuing higher. Another element that adds strength to sellers is that the price is in an important resistance region on the daily chart, which could favour the emergence of sellers over the next few days. The Relative Strength Index (RSI) indicator shows reading at 70.36. Readings above 70 tend to indicate an overbought situation and possible buyer exhaustion. From a technical point of view, if USDMYR manages to break below 4.6800, it could initiate a major downward movement, which could see the price fall as low as 4.6550 and 4.6300 in a few days. From a macroeconomic point of view, the market may lose some volatility between today and tomorrow, as a decision on the interest rate for the USD will be released by the Federal Reserve (FED) on Wednesday. Investors should trade with caution, especially on Wednesday morning, as the market could become quite volatile depending on the FED’s stance on monetary policy in the US.