USDMYR Technical Analysis

The US Dollar continues its downward movement against the Ringgit and is now trading at 4.2590. The recent downward movement is a natural market reaction to the extensive upward movement that the USDMYR has made since 2020, reaching the highest price since 1998 at 4,7470. From a macroeconomic point of view, Malaysia has been showing good numbers in the unemployment rate (3,6%), inflation is under control (3,8%) and all this favours the vision of the local market as a good destination for foreign money. From a technical standpoint, USDMYR is approaching an important support region at 4.2400. If the price manages to break this support (at 4.2400), it can drop to 4.1700, where it should find more important support.