The US Dollar rose against the Ringgit this Thursday and is now trading at 4.4230. The bullish move is testing the highest price in the USDMYR since March 2020. As the policy adopted by the Fed has been monetary tightening to contain inflation, the US Dollar has a chance to continue to appreciate against other currencies. As this is an important resistance region, the continuation of the bullish move will require a strong breakout that must be able to break above the 4.4500 price. An alternative downside scenario for USDMYR could happen if the price manages to close below 4.4150, which would make room for a bearish move that could bring the USDMYR to the 4.3650 price level and then 4.3400. Still, despite the price being in a key resistance region, the bearish scenario in USDMYR seems less likely given US macroeconomic data and increasing uncertainty caused by Russia’s war with Ukraine.
