USD/MYR Technical Analysis

The US Dollar remains stuck in sideways lateralization against the Ringgit this Friday and is now trading at 4.2150. The Initial Jobless Claims data brought the lowest reading since 1969, (184k real versus 215k forecast). This number, in line with the Fed’s objective of achieving full employment, could end the tapering process sooner than expected and could also make the interest rate rise in 2022 to contain the advance of inflation in the US. This possible shift in outlook from dovish to hawkish could cause the USDMYR to appreciate even more in the coming days. From a technical point of view, if the price manages to break above 4.2400, it could rise to 4.2900. On the other hand, if it breaks below the 4.1930 level, it could drop to 4.1400 in a few days.