USDMYR Technical Analysis

On a day of low volatility the US Dollar is down -0.33% against the Ringgit and is now trading at 4.6485. The low market volatility can be explained by the US Independence Day holiday, when most US players are out of the market. From a technical point of view the USDMYR rose +10.88% between the 23rd of January and the 26th of June of this year. Recently, the Relative Strength Index (RSI) indicator entered an overbought region, signalling a possible exhaustion of buyers. On the 30th of June, USDMYR made a candlestick pattern known as a Bearish Pin bar (this candle usually has an important upper shadow and the body that does not exceed 30% of the total size of the candle). The USDMYR also formed a Classic Bearish Divergence between the 26th of May and the 26th of June, signalling a possible entry of the selling force. All these elements together point to a possible more important bearish retracement over the next few days in USDMYR. A downward move could take USDMYR into the 4.5800 and 4.5250 regions in a few days.