The US Dollar falls -0.28% against the Ringgit this Monday and is now trading at 4.6650. The downward movement comes as a market reaction to the extensive upward movement that took place between July 31 and October 23, 2023. The USDMYR recently broke an important ascending trend line on the daily chart and it is possible that the price will fall to the 4.5750 region, where it should touch an important support region. One element that also points to a decline in USDMYR is the fact that it made a fake breakout of the previous high at 4.7500. The November 6th candle showed an important entry of selling force, with a drop of 1.97% and since then the price has failed to break above its high at 4.7260. The Relative Strength Index (RSI) indicator also showed a reading of 77.83 on October 23, signalling extreme exhaustion of buyers (readings above 70 tend to show exhaustion of the buying force and a downward movement could follow). Investors should pay attention to the release of the Existing Home Sales in the US tomorrow, as it might move the market.
USD/MYR Technical Analysis
