USDMYR Technical Analysis

The US Dollar was up +0.31% against the Ringgit on Thursday and is now trading at 4.5550. The upward movement comes after the release of ISM Non-Manufacturing Prices data for the month of July in the US, which came in well above expectations (56.8 real against 52.1 forecast). The ISM is a composite index that is calculated as an indicator of the overall economic condition for the non-manufacturing sector. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting. As today’s reading came in at 56.8, this is why USDMYR goes up. Traders should also pay attention to the Unemployment Rate and Nonfarm Payrolls release tomorrow as this is the most important financial market news for the USD. From a technical point of view, the USDMYR could move up to the 4.5850 region, where it might find a key resistance point on the daily chart.