USDMYR Technical Analysis

The US Dollar fell -0.23% against the Ringgit this Wednesday and is now trading at 4.6830. From a technical point of view, today’s downward movement is characterized as an Engulfing candle pattern, in which a falling candle completely engulfs the previous bullish candle. This is an important reversal pattern because it shows the shift in market interest from predominantly buyers to sellers. Considering that USDMYR has just touched a resistance region on the daily chart, the following movement could be downward. Investors should pay attention to the interest rate decision for the USD later, as this could cause great volatility in the market. Most experts believe that the Federal Reserve (FED) will keep the interest rate for the USD unchanged at 5.5%. However, the most recent inflation readings in the US are beginning to raise questions regarding the current monetary policy. If the USD interest rate remains unchanged, USDMYR may fall as low as 4.6350 in a few days.