USDMYR Technical Analysis

The US Dollar has just broken through the highest price since the start of the pandemic and is now trading at 4.4510, which is the highest price since 2017. The upward movement is due to growing uncertainty because of the high inflation in the US at the moment and the possibility that the Fed will accelerate the process of raising interest rates. For the Ringgit, data from the Consumer Price Index can give a better picture of the economic health in Malaysia. Unlike the US, inflation in Malaysia is under control, at around 2.8% per year. From a technical point of view, the USDMYR is in an important resistance region, close to the all-time high of the parity and a bearish move is likely to begin soon. Despite this, macroeconomic elements, mainly coming from the US, may dictate the market’s direction in the short term.