USDMYR Technical Analysis

Despite news about US inflation, the USDMYR moved little on Friday, trading at 4.1820. Data from the Consumer Price Index (CPI) brought the reading of the highest inflation of the last 31 years in the US, which tends to be positive for the Dollar, as this may force the FED to raise the interest rate at the March meeting. The Initial Jobless Claims data also came in slightly lower than expected (223k real versus 230k forecast), which tends also to be good for the Dollar. From a technical point of view, USDMYR continues to tighten more and more into a triangular formation. A breakout to either side could start a new directional move in USDMYR. If it breaks above 4.1950, it will likely move up to 4.2400 in a few days. On the other hand, if it breaks below 4.1750, it can drop to 4.1400.