USDMYR Technical Analysis

The US Dollar rose +0.15% against the Ringgit this Wednesday and is now trading at 4.7290. The upward movement takes place following the release of US ISM Non-Manufacturing PMI data for the month of September, which came in line with expectations at 53.6. As the reading came above 50, this tends to show economic expansion and that is why the Dollar appreciates today. From a technical perspective, as USDMYR managed to break above the last resistance region on the daily chart, it is now possible for it to rise towards the all-time high at 4.7475 over the next few days. When the price touches the resistance at 4.7475 and considering that the Relative Strength Index (RSI) indicator is already showing a reading above 70, it is possible that USDMYR will fall again towards the support at 4.6800 (readings above 70 on the RSI tend to show exhaustion from buyers and the selling pressure should jump in at any moment). Investors should pay attention to the release of Nonfarm Payrolls data on Friday, as the employment situation in the US has a major impact on the monetary policy adopted by the Federal Reserve (FED) and it could change the scenario in the short to medium term.