The US Dollar is up against the Ringgit and is trading at 4.3800 this Wednesday. Right now the price is close to a resistance region on the daily chart and a bearish retracement is quite likely. The CPI data, to be released later, may provide greater direction and clarity on the USD movement. The latest reading showed the highest inflation in the last 40 years for the USD (8.5%) and tomorrow’s reading is expected to be lower (at 8.1%). If the reading is higher than expected (8.1%), it means that despite the Fed’s efforts, US inflation remains out of control, which could mean an even further tightening of US monetary policies. This would have the power to drive the USD higher, maybe until the 4.4100 area. From a technical point of view, a pullback to 4.2900 is very likely.
