USD/MYR Technical Analysis

The US Dollar keeps gaining ground against the Ringgit since the last FOMC report released on Thursday. Although the FED didn’t make any change in the interest rate, the directors of the FED are beginning to change their minds about the US inflation, financial stimulus and interest rates. Out of the 18 voting directors, now 7 think that the FED must start hitting the brakes when it comes to the continuation of the economic stimulus. Although nothing has actually changed, the market already priced these votes, and the US Dollar has earned value against all of its counterparts. Specifically the USDMYR jumped to the 4.1400 level. As the market is seeing a possibility that the FED will increase interest rates before announced, the most likely scenario is that the USDMYR will keep its way up until it reaches the 4.1750 as a first target and the 4.2200 level as a final projection, which could be reached in a matter of 2 to 4 months.