USDMYR Technical Analysis

The US Dollar is down 0.39% against the Ringgit on Tuesday and is now trading at 4.3660. MYR’s appreciation against the USD comes amid a greater easing of the zero-Covid strategy adopted by China. This milder Covid control policy by China raises hopes for a scenario of higher global growth over the next few months, which caused investors to sell assets considered safer (such as the USD) and buy more risky assets. (Like other currencies and stocks). From a technical point of view, USDMYR is approaching an important support region and the Relative Strength Index (RSI) indicator is already in an oversold situation with a reading at 19.64. The RSI indicator shows when the market may be in a situation of exhaustion because it has moved too much in a certain direction. Readings below 30 could be interpreted as oversold signals and a bullish move could be on the way.