USDMYR Technical Analysis

On a US holiday day, the US Dollar is down 1% against the Ringgit and is now trading at 4.4900. The downward movement happens as a natural reaction of the market due to the extensive upward movement that took place from December 2020 until the beginning of November, when the USDMYR accumulated an increase of 18.7% in that period. As the market has a cyclical behaviour, the buyers who benefited from the upward movement, eventually end up taking profits, which generates the opposite movement, causing a retracement. From a technical point of view, USDMYR could drop as low as 4.4450 where it should find temporary support. Next week traders should look forward to Non-Farm Payrolls data for the USD, which should give a clearer direction on the market.