USDMYR Technical Analysis

The US Dollar continues to rise against the Ringgit on Tuesday and is now trading at 4.3960. The movement has already accumulated a 4.66% increase since March 31 and is a good picture of the scenario of uncertainty that the world is experiencing together with the economic tightening policy adopted by the FED in recent meetings. The interest rate hike last week was not enough to stop the MYR from devaluation against the US Dollar. Later Powell’s speech could give more direction to the Dollar in the coming days, as investors will keep an eye out for the next monetary policy steps. From a technical standpoint, USDMYR is overbought and testing the resistance region at 4.3960. That region was the highest point of April 2020, and a sharper bearish entry could bring USDMYR up to 4.3118 where it should find temporary support.