USDMYR Technical Analysis

The Ringgit rose against the US Dollar on Tuesday and is now trading at 4.1900. With growing concerns that the Fed will start the tapering process in November, investors are starting to go long in USD, which has caused the US currency to appreciate against almost all of its counterparties, especially the Ringgit. On Thursday, the FOMC data could give important hints on the future of US monetary policy. If investors understand that there is a chance that the Fed will start withdrawing financial stimulus soon, the USD could appreciate further against the Ringgit. Coming from Malaysia, on Friday, the Consumer Price Index data should bring information about inflation in Malaysia. From a technical point of view, the USDMYR could rise as high as 4.2400 before making any major retracements.