USDMYR Technical Analysis

The Dollar fell against Ringgit on Tuesday and is now trading at 4.2210. Throughout this week, investors will be eyeing the Consumer Price Index for the MYR, to be released on Wednesday, and this indicator could provide vital information about the economic recovery in Malaysia. On the US side, the market is waiting for news regarding New Home Sales, which will also bring important information about the US economy. On Thursday, the US GDP data will be a key piece, as if the number comes below expectations, the Fed may understand that the financial stimulus has not yet had all the desired effect and may decide to keep the monthly 120 billion dollars of help longer and that can weaken the Dollar in the medium term. From a technical point of view, the USDMYR could drop as low as 4.1750 before gathering strength to rise again.