USDMYR Technical Analysis

The US Dollar is down -0.11% against the Ringgit on Tuesday and is now trading at 4.5980. The downward movement comes amid the release of US CB Consumer Confidence for the month of May, which brought a reading slightly higher than expected (102.3 real against 99 forecast). Despite the reading coming in higher than expected, the difference was small, making investors not so excited about the USD. From a technical point of view, USDMYR is down because of the extensive bullish movement that has taken place since April, causing the price to enter an overbought region. The Relative Strength Index (RSI) indicator showed 87.31 on the 25th of May. Readings above 70 usually show bullish exhaustion and the beginning of a downward move at any time. The downward movement will be confirmed if the price manages to break below 4.5870. If that happens, USDMYR could drop as low as the 4.5250 region in a few days.