USDMYR Technical Analysis

The US Dollar remains largely undecided against the Ringgit on Thursday and is now trading at the 4.6110 level. The indecision sentiment is due to the release of Nonfarm Payrolls data for the USD which will be released tomorrow. This is one of the most important indicators for the financial market, as it measures the variation in the number of people employed during the last month of all non-agricultural companies. Another important macroeconomic data related to Nonfarm Payrolls is the unemployment rate. Together these two indicators constitute the best information regarding the US labour market and are viewed with extreme attention by investors as unemployment can cause important changes in monetary policy. From a technical point of view, the Relative Strength Index (RSI) indicator shows that the USDMYR is in an overbought region and a downward movement could happen if the price manages to break below 4.5860. If that happens, USDMYR could drop as low as 4.5260 where it should find important support.