USDMYR Technical Analysis

The US Dollar remains trapped within a widening against the Ringgit on Friday and is now trading at 4.1860. The recent widening holds amid mixed macroeconomic data from the US. Initial Jobless Claims data came in slightly higher than expected, but not enough to turn on any red flags. Inflation came higher than expected for the month of February in the US, but this was also already predicted by the market. Therefore, the feeling of indecision remains. The main driver of the market at the moment remains the war in Ukraine after the invasion by Russia. From a technical point of view, if USDMYR manages to break above 4.1900, it could move up to 4.2400 in a few days. A breakout below 4.1740 looks unlikely at this point because of the possible interest rate hike next week.