The USD/MYR remains a bearish currency pair. The Malaysian Ringgit continues to create stronger values, and thus a lower trajectory in the USD/MYR that has stood out among the emerging currencies. The USD/MYR as of this writing is near the 3.9055 ratio and is within depths not seen since March of 2018. Technical traders looking at the currency pair need long-term charts if they are looking for validation for bearish opportunities.
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Fundamentally however the stronger Malaysian Ringgit has a lot of credibility. The USD/MYR is correlating to the broad Forex market certainly, but the MYR is also outperforming many other currencies. And the USD/MYR and the USD/SGD can be compared regarding their ability to traverse lower realms.
Speculative Forays and Looking for Additional Lows
Yes, at some point the Malaysian government may be forced to consider trying to step in front of the strength of the MYR. Exporters from the nation are likely to be suggesting the Malaysian Ringgit is getting too strong. However, USD centric weakness is also a large factor in the move downwards in the USD/MYR and financial institutions will have their eyes on tomorrow’s U.S inflation data.
The Consumer Price Index reports tomorrow from the U.S will factor into the USD/MYR, but trading early on Friday may be positional. Financial institutions in Asia could try to cautiously combat potentially tame inflation results from the U.S which could cause further erosion of the USD/MYR by anticipating the CPI results and trading ahead of the report. This means early trading on Friday could be rather fast. And it should be remembered by the time the U.S data is released, trading in the Malaysian Ringgit will be hard deliver – this until early Monday.
Downwards Motions and Bearish Signals
Day traders who are betting on the USD/MYR may want to continue to pursue downwards momentum in the currency pair.
- Speculative forces could be met by some kind of counter action by the Malaysian Central Bank (Bank Negara Malaysia) but the current government may not be keen on interceding too quickly.
- Looking for further movement downward in the USD/MYR may be appealing, but at some juncture support will likely start to prove durable, but where exactly?
- Cautious traders in the USD/MYR may want to wait until the U.S inflation data is released tomorrow, speculators with a taste for adventure may be more ambitious but should certainly use solid risk taking tactics.
USD/MYR Short Term Outlook:
Current Resistance: 3.9085
Current Support: 3.9020
High Target: 3.9150
Low Target: 3.8930