The US Dollar continues its bullish move against the Ringgit and is trading at 4.4400 on Wednesday. This is the fourth straight day up on the USDMYR since Friday when the price touched a minor support region at 4.3850. Trade Balance data coming from Malaysia came in higher than expected (26.7B actual vs 21.1B forecast) and as it measures the difference in value between imported and exported goods and services over the reported period this would normally encourage investors to buy the MYR. However, the difference between the actual result and the expected result was not so great as to cause a significant impact. From a technical standpoint, the USDMYR appears to be moving towards a resistance region at 4.4700. What makes this region so important for the USDMYR is because there is former resistance on the daily chart that comes together with the 200-period Simple Moving Average (SMA200). The alignment of 2 or more elements of technical analysis in the same place is called confluence of factors and the market tends to pay more attention to these levels. If the price fails to break above 4.4700, USDMYR could resume its downward movement and fall as low as 4.3650 in a few days.
