USD/MYR Analysis Today - 29/08: Fresh Lows Hit (Chart)
Date
8/29/2024 2:56:35 PM
(MENAFN- Daily Forex) The USD/MYR remains one of the most interesting currency pairs to trade for day traders who are interested in looking at speculative assets which doesn't get a lot of attention.
The USD/MYR is around the 4.3230 ratio as of this writing. The currency pair has achieved a fresh low today and it is now challenging values last seen in January of 2023. On the 15th of July this year the USD/MYR was near the 4.6860 mark, on the 15th of April the currency pair was around the 4.7810 vicinity. The decline in the USD/MYR has been strong as it has gone from apex highs back into the middle ground technically of its long term price realm.
For deeper value insights long-term charts should be looked at by traders considering the USD/MYR. Certainly a day trader cannot use five year charts to make a five minute trade, but perspective can be gained while considering the behavioral sentiment of financial institutions as the currency pair's momentum continues to show bearish tendencies.
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The USD/MYR maintained a price around the 4.3750 ratio last Friday before closing. After Malaysia closed trading on the USD/MYR for the day, U.S Fed Chairman Jerome Powell spoke at the Jackson Hole Symposium and delivered dovish rhetoric. Because the USD/MYR was effectively closed from trading, speculators and financial institutions had to wait for Monday's Asia opening to react to the news the U.S Federal Reserve is going to cut the Federal Funds Rate. The USD/MYR sold off with price velocity.
The USD/MYR went from the 4.3750 level to a low around the 4.3350 mark on Monday. And while the USD/MYR did reverse slightly higher from those Monday lows, the currency pair did not attain a violent reversal which indicated selling sentiment remained strong in financial institutions. On Tuesday the USD/MYR hit a high around the 4.3585 mark, but then began to incrementally selloff again. This morning's fresh lows continue to display bearishness/MYR Near-Term Considerations
Traders should not get overly ambitious about the downwards trajectory of the USD/MYR, they must remain cautious if they have limited funds. The U.S will release important GDP numbers today showing growth and inflation data. The impact of the outcomes will certainly stir the USD/MYR, but most of the reaction will likely occur only tomorrow when Malaysia reopens for the start of Friday's trading.
Also USD/MYR speculators need to be aware that a U.S holiday will be celebrated on Monday, meaning volumes in Forex will start to thin on Friday and cause some choppiness in the USD/MYR following the weekend. If U.S GDP numbers are weaker today it could provide selling impetus for the USD/MYR, but if results are stronger than expected the currency pair could reverse higher. However, if the USD/MYR sustains its lower value range going into the weekend this will be a solid sign for the Malaysian Ringgit and bearishness in the USD/MYR.
USD/MYR Short Term Outlook:
Current Resistance: 4.3260
Current Support: 4.3215
High Target: 4.3295
Low Target: 4.3180
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