USD/MYR Technical Analysis

The dollar has made a significant move to the downside against the Ringgit this Monday, and it is now traded at 4.1220. This week investors will pay attention to the ISM Manufacturing PMI for the US Dollar, due on Tuesday. This indicator measures the economic activity through the eyes of managers of the main companies in the US and it is a leading indicator because it shows the level of confidence in the future. Recently the PMI has shown readings above 55 and historically, when the PMI stays a little longer above the 55, a period of economic retracement follows. From a technical point of view, the US Dollar could keep losing ground against the Ringgit until the 4.0950 level.