USD/MYR Technical Analysis

The US Dollar made a big bullish move against Ringgit this Friday and is now trading at 4.1660. Despite being a US holiday, the USDMYR rallied and broke the high of the last few days’ sideways at 4.1600. This upward movement was driven by data from the Consumer Price Index, released yesterday, which brought the highest inflation in the last 30 years. Such high inflation could end up putting pressure on the Fed to shift its positioning from Dovish to Hawkish and this could cause the USD to rise further. From a technical point of view, considering that USDMYR has already broken a resistance, it is possible that it will now seek the 4.1900 level in a few days.