USD/MYR Technical Analysis

On a day of high volatility, the US Dollar rallied against the Ringgit just to give back about 60% of the rally and is now trading at 4.1950. Although the Fed did not raise the interest rate for the USD, it did make it clear that inflation is well above target and that the Fed may raise interest rates at any time from the next meeting to contain inflation, and that caused a certain appreciation of the Dollar today. On the part of Malaysia, the country seems to be dealing very well with the new variant of Covid-19, as the average of deaths is at the lowest level since April 2021, and this is seen positively by the market. The Trade Balance data, to be released later, could give the Ringgit more strength in the short term. From a technical point of view, USDMYR will enter a possible ignition if it manages to break above 4.2050, which could signal a breakout of a downtrend line on the daily chart.