Earlier in the day, the US Dollar made a bullish move against the Ringgit, only to fall again later, characterizing a bearish pressure to the downside. USDMYR is now trading at 4.4560. The sell-force move comes after the Fed’s decision to raise the interest rate from 1.75% to 2.5% for the USD. Overall, this would mean a continuation of the bullish movement in USDMYR, but as the change happened in line with what was expected, the initial reaction of the market was the opposite of usual. Later, Fed Chair Jerome Powell said that the magnitude of the latest interest rate changes were quite important and that the effects of containing inflation should appear soon. The importance of pursuing 2% inflation was also highlighted, as well as the use of any tool to stop the increase in inflation in the US. From a technical point of view, USDMYR is in a very important resistance region on the Daily chart and today’s candlestick already signals greater interest from sellers. If the price manages to break below 4.4470, it can drop to 4.3650 in a few weeks.
