The US Dollar recovered slightly against the Ringgit and is now trading at 4.2420. Friday’s candlestick showed an important rejection of buying force and this was caused by the decision of Bank Negara Malaysia (BNM) to keep the interest rate unchanged at 2.75% for the Ringgit. As USDMYR has shown an important downward movement since the 7th of November, it now appears to be starting a bullish retracement movement. From a technical point of view, USDMYR has just touched a support region at 4.2400 and is already showing signs of a false breakout with Friday’s candle showing an important lower shadow. An appreciation of the USDMYR could bring the price up to the 4.3600 region in the coming days.
