USDMYR Technical Analysis

The US Dollar is up +0.74% against the Ringgit on Thursday and is now trading at 4.6230. Today’s upward movement is due to the release of data from 2 important macroeconomic indicators for the USD. GDP data for the first quarter came in higher than expected (+1.3% actual versus +1.1% forecast) and this tends to be good for the USD. Another important data that gave strength to the USD was the Initial Jobless Claims that came lower than expected (229k real against 250k forecast). This shows that the US is managing to maintain a good situation with regard to unemployment. The continuation of today’s bullish move consolidates the breakout of the most important resistance region in recent months for USDMYR at 4.5300. As the Relative Strength Index (RSI) is above 70 (87.31 right now), it is possible that the USDMYR will start to make a downward movement over the next few days. A pullback could bring the price down to the 4.5300 region which should act as support.