USDMYR Technical Analysis

The US Dollar fell this Wednesday as a reflection of data from the US CB Consumer Confidence released yesterday, which brought a reading much lower than expected (102.9 real against 108.5 forecast). The downward movement happens because the US CB Consumer Confidence measures the level of consumer confidence in economic activity and a lower-than-expected reading shows that the economy is not as heated as expected. Earlier today data from the ISM Manufacturing Purchasing Managers Index (PMI) came in lower than expected (47.7 actual against 48 forecast) and this could add more selling force to the USDMYR over the next few days, as the PMI measures the level of purchasing managers’ confidence in the economy. Readings below 50 tend to show economic contraction. From a technical point of view, USDMYR is in a resistance region on the daily chart and if the price manages to break below 4.4550, it could drop as low as 4.3650 in a few days.