USD/MYR Technical Analysis

The FED’s chairman, Mr. Jerome Powell, was very careful in his speech at the Jackson Hole meeting to say that the US Central Bank will not change the interest rate until September 2023. Investors understood his speech as a Dovish position, and this caused the Dollar to fall against the Ringgit this Monday. Although the fear of the Delta Covid-19 variant is still hanging over Malaysia, the Ringgit was the second currency that appreciated the most against the dollar. This is due to the optimism that investors see in the future about a more stable situation in Malaysia. From a technical point of view, USDMYR is at an important support region and if it manages to break below the 4.1500 level, it could drop to 4.1200 in a few weeks. On the other hand, if the price breaks above 4.1600, it could rise to 4.1900.