USDMYR Technical Analysis

The Retail Sales for the US came in below expectations this Tuesday (-1.1% real versus -0.3% forecast) and although the usual impact would be for the dollar to fall, it remained stable against Ringgit. The USDMYR is now trading at 4.2380. The scenario of indecision of the past few days comes amid the growing concern caused by the resignation of the Malaysian Prime Minister, Mr. Muhyiddin Yassin. Another aggravating factor for Ringgit is the fact that Malaysia is experiencing its outbreak of the Covid-19 and now it has to deal with lockdowns in the face of an already fragile economy. From a technical point of view, if the USDMYR breaks above 4.2400, it could rise to 4.2890 in a few days.