The US Dollar rose +0.47% against the Ringgit this Wednesday and is now trading at 4.7040. The upward movement comes after the triangle breakout on the daily chart, which began on December 11th. The rise is also supported by the release of Crude Oil Inventories data, which came in much lower than expected (-4.259M actual vs -0.650M forecast). This indicator measures the number of barrels of oil held by US firms. As oil is an important input in the production chain, if the reading comes lower than expected (such as today), it means that more oil was used during the previous week and that the production chain was more active than initially expected. If the production chain was more active during the last week, this means that the demand for goods, products and services was stronger than usual and this tends to cause inflation, which is why the USD rises today. From a technical point of view, USDMYR could rise towards the 4.7150 region in the coming days, where it should encounter resistance on the daily chart.
USDMYR Technical Analysis
