USDMYR Technical Analysis

The US Dollar barely moved against the Ringgit on Monday, maintaining the indecision sentiment of recent days, and is now trading at the 4.4760 level. The indecision is due to a weak macroeconomic agenda for both the USD and the MYR. Another element that adds uncertainty to the market is that investors seem to be waiting for the Federal Reserve (FED) Chairman’s statement, Mr. Jerome Powell, scheduled for tomorrow. If investors understand that Powell’s message is more restrictive on monetary policy (hawkish), this could cause USDMYR to break out of the resistance region where it is and continue rising. On the other hand, a milder tone in the speech (dovish) may open space for the USDMYR to resume the downward movement. From a technical point of view, if USDMYR drops below 4.4550, it could drop as low as 4.3650 in a few days.