The US Dollar was up 0.86% against the Ringgit on Thursday and is now trading at 4.2790. The bullish move follows the breakout of the resistance region at 4.2450 and the high of the day was 4.2900. The strong upward move came after one of the Fed’s spokespersons said that the US Central Bank already has solid elements to justify a 0.5% interest rate hike for the USD at its next meeting in May. From a technical point of view, as USDMYR managed to break above the round number of 4.2450 and has already touched 4.2900, it is possible that the price will be sideways between these 2 levels of resistance (4.2900) and support (4.2450) until the next Fed meeting in early May. If the FOMC decides to raise the interest rate for the USD by 0.5%, this could see the USDMYR rally to 4.3650 where it should encounter stronger resistance.
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© 2019 High Leverage FX - All Rights Reserved.