USDMYR Technical Analysis

The US Dollar started the day up 0.27% against the Ringgit, only to give it all back and is now trading in negative territory, trading at 4.2120, 0.03% below its opening price. The rejection move by the sellers happens in an important region of resistance on the daily chart and a continuation of the downward movement tomorrow could point to even more selling strength on the way. Later, the ADP Nonfarm Employment Change data may give a better understanding of the US labour market. And on Friday, the release of Non-Farm Payrolls is the most awaited economic data. If US job creation remains strong as in recent readings, this could give strength to the dollar and in that scenario, the USDMYR could rise as high as 4.2450 in a few days. On the other hand, a weaker reading could further weaken the Dollar and the USDMYR could fall as low as 4.1800.