USDMYR Technical Analysis

The US dollar rose against the Ringgit on Friday and is now trading at 4.4550. Despite the bullish move, USDMYR has not yet been able to break above the highest price of 4.4583 from the last few days. The most important element of the markets this Friday is the decision of the European Central Bank, which raised the interest rate to contain inflation (0,5% real against 0,25% forecast). This is the first-rate hike for the EUR in a decade and marks the end of the negative interest rate era for Europe. On the US side, Initial Jobless Claims data brought in a higher-than-expected reading (251k actual versus 240k forecast) and this may have prevented the US Dollar from rising further against the Ringgit. From a technical point of view, if USDMYR manages to break below 4.4450, it could signify the start of a more important downtrend and bring the price up to 4.3450 in a few weeks.