The US Dollar rose +0.39% against the Ringgit this Monday and is now trading at 4.6800. The upward movement happens as the initial phase of a possible breakout of the downtrend line on the daily chart. This breakout is especially important because it marks the possible exit of the price from within the triangle on the daily chart that has been happening since November. After the price spends some time trapped inside a triangle, it is important that the breakout is confirmed by price action. Confirmation of the bullish breakout will happen if the price falls below 4.6600 and then breaks above 4.6850. From a technical point of view, this breakout means that USDMYR could rise to the 4.7823 region in the coming weeks. From a macroeconomic point of view, investors should pay attention to the release of Consumer Price Index (CPI) data for the USD tomorrow. The CPI measures the variation in the price of goods, products and services within the economy and is one of the main indicators to understand inflation in the USA. The most important news is the interest rate decision for the USD on Wednesday as this will dictate the money flow in the coming months.
USDMYR Technical Analysis
