The USD/MYR has held onto its lower values attained since the middle of last week, allowing speculators the opportunity to test its very tight range with speculative wagers.
As of this morning the USD/MYR is near 4.4275 depending on bids and asks being demonstrated. The currency pair while holding onto its lower values which were produced last week has languished within what is clearly a tight near-term range. Speculators may be able to pursue the USD/MYR but it will have to be done tactically using entry orders, along with stop loss and take profit mandates.
It appears financial institutions are comfortable with the USD/MYR equilibrium for the moment. The currency pair has been testing lows around the 4.4100 zone rather consistently, and did produce a momentary steeper ratio of 4.4000 very early on Monday. The ability of support levels being durable is countered by resistance above also proving strong around 4.4360 a few times since last Friday.
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Behavioral Sentiment and Waiting for Impetus
For the time being traders of the USD/MYR will have to practice supreme patience. Yes, price velocity could develop suddenly, but for the time being it appears financial institutions are waiting for another dose of impetus to change their outlooks. It appears the USD/MYR is comfortable within the 4.4100 to 4.4350 range.
Traders looking to take advantage of a trend may be able to find some momentum develop early tomorrow, but the USD/MYR has been stable because financial institutions likely believe the current business climate is cautious and waiting for shifts to occur via policy announcements. Until some form of agreements are made publicly regarding current tariff rhetoric from the U.S White House, financial institutions may believe the USD/MYR has found fair value.
Sudden Shift of Sentiment and the USD/MYR
Technical traders may find it rather boring in the USD/MYR currently because of the tight range being produced, but there are opportunities for speculators willing to wait for resistance and support levels to be approached in order to bet on reversals.
Yes, there is always a danger the USD/MYR could suddenly produce an outlier in one direction that is unexpected, and this is why stop losses are important to protect against these potential circumstances.
However, the past handful of days in the USD/MYR can be interpreted as a case of high caution, but within known values that allow for wagers seeking slight changes in price if a trader has the ability to sit tranquilly and allow the currency pair to work.
USD/MYR Short Term Outlook:
Current Resistance: 4.4290
Current Support: 4.4220
High Target: 4.4310
Low Target: 4.4110
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