The near-term has produced slight upwards momentum in the USD/MYR, but the currency pair continues to maintain a well-practiced known price range for speculators to wager.
The USD/MYR is near the 4.4405 ratio as of this writing. The currency pair has seen some buying emerge since late Monday when the 4.3840 vicinity was briefly traversed. The USD/MYR has correlated to the broad Forex market and continues to demonstrate a stable environment for speculators.
The USD/MYR is now within the middle of its one and three month price range via technical charts. The USD/MYR has been able to provide traders opportunities to wager on resistance and support levels rather regularly. Malaysia has been rumored to be a place Chinese based corporations may want to establish centers for production of computing technology, this in an effort to avoid tariffs from the U.S. However, the USD/MYR has produced rather quiet trading and has not shown a great amount of volatility as talk about potential economic tariffs aimed at China swirl.
Trading Range of the USD/MYR
The trading range of the USD/MYR has been rather consistent and its ability not to over react to noise from afar is intriguing. The currency pair has certainly acted in a correlated manner to most of the global Forex conditions, but it has also shown a rather strong foundation for the Malaysian Ringgit to remain more stable compared to many other major currencies against the USD.
The slight move upwards since early this week may indicate that financial institutions believed the USD/MYR was flirting with overbought territory. The lows produced on Monday however only touched values seen in late January, this before the USD/MYR saw a surge of buying when global fear about the Trump tariffs hit the markets on the 3rd of February. The 4.3700 vicinity was being challenged before the Forex scare globally in late January.
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U.S Economic Data and Rhetoric and USD/MYR Thoughts
Most of the trading for the USD/MYR is done for Thursday. The currency pair however will see a flurry of activity upon opening tomorrow. This will come in the wake of U.S economic data today via the Gross Domestic Product results. However, while the growth numbers are important from the U.S, financial institutions are heavily geared towards the rhetoric from the Trump White House.
- While some nervousness clearly exists among large traders it is likely they are starting to feel more calm about their outlooks.
- The slight climb higher seen in the USD/MYR this week may also be a reaction to U.S equities turning in declines.
- An increase in risk adverse trading in Forex has been sparked because of less risk appetite.
- Resistance levels may start to come into focus for the USD/MYR if U.S equities turn in better results today and looking for lower values may come into vogue near-term.
USD/MYR Short Term Outlook:
Current Resistance: 4.4470
Current Support: 4.4350
High Target: 4.4760
Low Target: 4.3980
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