USDMYR Technical Analysis

The US Dollar rose against the Ringgit and is now trading at 4.4910. Recently the market has been more volatile than usual due to Russian tensions with the West, which has recently decided to indefinitely cut off gas supplies to Europe. The ISM Non-Manufacturing PMI data for the month of August brought a much higher than expected reading (56.9 actual versus 55.1 forecast). This adds even more buying pressure on the USD, which has already been in an uptrend over the past few months. As the reading of inflation in the US is high and unemployment low, the FED will likely maintain the path of interest rate rising at the next meeting on September. From a technical point of view, USDMYR is in an important resistance region. If the price manages to break above 4.50, it will mark a new all-time high. On the other hand, if the price manages to break below 4.4740, it could make room for a broad downward move towards the 4.40 region.