USDMYR Technical Analysis

Due to a weak macroeconomic agenda for this Monday, the USDMYR moved little and is currently trading at 4.6670. The sentiment of indecision is evident due to the candlestick shape on the daily chart, which has a big tail down, a smaller tail up and a small body. The small body signals a tie between the buying and selling force, as neither side managed to dominate the market during the trading session. From a technical point of view, USDMYR is in an overbought region as the Relative Strength Index (RSI) has been several days above 70 and the price has yet to drop. The price also significantly moved away from the 200-period moving average on the daily chart, showing that buyers may run out of gas soon. If the price manages to break below 4.6350 it could drop to the 4.5750 and 4.5250 regions in a few days. Traders should pay attention to the release of the US Consumer Price Index (CPI) on Wednesday, which could move the market significantly.