USD/MYR Technical Analysis

The US Dollar continued its downward movement against the Ringgit on Wednesday and is now trading at 4.1900. The speech of FED’s chairman, Mr. Jerome Powell brought the information that much of the inflation in the US is linked to problems in the global production chain caused by COVID-19. Market analysts already predict 2 possible interest rate hikes for the USD in 2022 and 4 possible hikes in 2023. Despite this, the market remains cautious, in part because the information of a possible interest rate hike is already being priced in by the market. Despite the speed with which the omicron variant is spreading across the US, in Malaysia Covid-19 is on a downward trend and under control and this has caused the MYR to strengthen against the USD. From a technical point of view, it is possible for USDMYR to fall to the 4.1650 level, where it may find a temporary support region.