USDMYR Technical Analysis

The US Dollar rose against the Ringgit on Wednesday and is now trading at 4.5050. The recent bullish move came after the release of CB Consumer Confidence data for the USD, which came in higher than expected. The Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism. The USD appreciated because as consumer confidence is higher than expected, this tends to make consumers spend more. This, in turn, tends to cause inflationary pressure, which may cause the Federal Reserve (FED) to raise interest rates to contain inflation. From a technical point of view, considering the downward movement of the last few days, it is possible that the USDMYR will make a bullish retracement to the region of 4.5800, where it should find more important resistance.