The US dollar rose +0.17% against the Ringgit this Wednesday and is now trading at 4.7420. The USDMYR has been in an uninterrupted uptrend since August 1, 2023 and has already gained 5.4% since then. The upward movement comes amid fears of rising inflation in the US and more recently due to the uncertainty of the conflict in Israel. From a technical perspective, as USDMYR managed to break above the resistance region at 4.6800, it is possible that it could continue rising until it touches the 4.7475 level. When the price touches this level (4.7475), an important entry of the selling force is possible to occur. The Relative Strength Index (RSI) indicator also shows a reading at 67.00. Readings above 70 tend to show exhaustion of the buying pressure and a downward movement could begin soon. An alternative scenario could happen if the price manages to break above 4.7475 and this could cause USDMYR to rise to 4.7750, which is the highest price since 1998.
