The US Dollar gained +0.11% against the Ringgit this Wednesday and is now trading at 4.6660. Despite the appreciation compared to yesterday’s close, the main sentiment in USDMYR is indecision, as it rose at the beginning of the session and was traded at 4.6745, only to fall again throughout the day. What causes this indecision is mixed data from the Dollar. ADP Nonfarm Employment data came in lower than expected (103k actual versus 130k forecast). As the ADP measures job creation in the US private sector and the number was lower than expected, then it can be understood that the job market appears to be slower than initially thought. The Crude Oil Inventories data came in much more negative than expected (-4.632M current versus -1.354M forecast) and this tends to be positive for the USD. As the two most important economic indicators of the day point in opposite directions, the sentiment of indecision remains. From a technical perspective, USDMYR remains trapped within a triangle formation on the daily chart. As the triangle formed shortly after the fake breakout of the resistance at 4.7500, a broader downward movement is soon expected. If the price manages to break below 4.6350, it could fall as low as 4.5750 in a few days.
USDMYR Technical Analysis
