After testing important support yesterday, the USD/MYR has seen some buying emerge, however, the forex pair remains comfortably within its pronounced bearish trend. After hitting the 4.1600 level on Tuesday a strong reversal higher did develop which tested the 4.1700 juncture. Trading this morning has mostly been within a vicinity of 4.1655 and 4.1700.
If the USD/MYR breaks above the 4.1700 level it could certainly test resistance junctures near the 4.1800 mark which were touched late last week. However, the prevailing amount of risk appetite in the global markets and the belief that solid investment sentiment will remain steady might serve as a strong formula for the USD/MYR to actually continue its bearish trend which it has enjoyed since late March.
The short term level of 4.1650 may prove to be a critical inflection point for the USD/MYR. If this level is broken lower the forex pair could develop enough momentum to begin a serious test of trading values not traversed since February. The USD/MYR is testing important low watermarks currently and it may take several attempts for the 4. 4.1650 level to crumble and be broken downwards. Traders should keep their eyes on the current price action to see if the USD/MYR can sustain these values. The mark of 4.1600 caused an immediate reversal higher yesterday.
Speculators may want to enter limit orders seeking selling positions of the USD/MYR within the range of 4.1680 to 4.1710. More cautious traders may want the USD/MYR to go to 4.1750 or slightly higher before selling the forex pair. Certainly, traders who believe upward reversals will develop short term can buy the USD/MYR and speculate that resistance above the 17.10 juncture is going to be tested, this can be accomplished by buying within the forex pair’s current price levels of 4.1680 to 4.1690.
The USD/MYR has achieved a solid technical bearish trend mid-term. Yes, this forex pair can prove volatile at moments, but the ability of the Malaysian Ringgit to provide a fairly comfortable trading environment should be recognized. Speculators who have the desire to try and profit from the selling momentum of the USD/MYR may be inclined to pursue this forex pair near term. The rather tight range of the USD/MYR makes it a speculative opportunity.
Malaysian Ringgit Short Term Outlook:
Current Resistance: 4.1710
Current Support: 4.1650
High Target: 4.1800
Low Target: 4.1600
