USD/MYR Technical Analysis

The US Dollar is down -0.09% against the Ringgit on Monday and is now trading at 4.6700. Although the price was slightly lower from the day’s open, the market is showing an important rejection signal as the start of the day’s trading session pushed the price towards 4.6880 before quickly pushing lower. Today’s movement creates a candlestick pattern known as a Selling Pin bar, which is characterized by a major upside tail and a candlestick body that is less than 1/3 of the total candlestick size. This is a recurring pattern in technical analysis and many traders use it as a trigger for a sell entry. Another important element is that the Relative Strength Index (RSI) indicator is in the overbought zone (73.12), which may indicate that buyers are tired of pushing the price up. If that is the case, a downward movement may start in the coming days. From a macroeconomic point of view, the US Consumer Confidence and New Home Sales data to be released tomorrow may give a clearer direction for the USD.