USDMYR Technical Analysis

The US Dollar is testing the 2020 high against the Ringgit and is now trading at 4.4350. In recent days, the Dollar has appreciated sharply, mainly due to recent statements by the Fed about the possible increase in interest rates to contain inflation. Another element that adds pressure to the increasing value of the Dollar is the situation in Europe as it may run out of natural gas in the coming weeks due to the Russia closure of the Nord stream pipeline. Germany might be one of the most affected countries. Experts also point out that the FED took a long time to start acting and now the pressure of inflation is increasing. The next Fed meeting will take place on July 27, where rates are expected to rise to 2.5%. From a technical point of view, USDMYR is in an important resistance region. This is also one of the highest levels ever reached by USDMYR. A breakout of 4.4270 could make room for a broader bearish move over the next few days.