USD/MYR Technical Analysis: Price Velocity As Stron (Chart)
Date
10/24/2024 2:44:50 PM
(MENAFN- Daily Forex)
The USD/MYR has climbed again in trading today, and is touching highs seen a month and a half ago as financial institutions have clearly become increasingly cautious as the U.S election approaches. The USD/MYR has seen more strong buying today and the price of the currency pair is around the 4.3510 mark as of this writing. The level for the USD/MYR is now touching values last seen around the 10th of September. Meaning the USD/MYR has seen enough bullish momentum in the past six weeks to essentially wipe out all of the selling done after the U.S Fed announcement which cut interest rates by 0.50 basis points in the middle of September.
It is important to note for USD/MYR traders that the Malaysian Ringgit is not alone in losing value since the end of September when the currency pair was trading near the 4.1015 mark on the 30th. The USD has been strong across the board in Forex and many major currency pairs technically have experienced similar technical movement.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Caution in Global Forex and the USD/MYR
There will be Manufacturing PMI data from the U.S today along with weekly Unemployment Claims. But these numbers might not be considered particularly important and only cause a brief reaction in Fore . The USD/MYR will certainly get plenty of impetus next week via the Advance GDP and jobs numbers which are on the schedule. If the U.S economy continues to show it is growing, this could certainly cause the Federal Reserve to become less dovish.
Caution in Forex and the USD/MYR is happening too because the U.S election is drawing close. There are less than two weeks to go before the U.S vote and financial institution are clearly nervous about the potential results and the possible effects the outcome could have on USD centric sentiment. The U.S Federal Reserve will conduct and announce its interest rate decisio on the 7th of November, two days after the election/MYR Short-Term Risk Management
The USD/MYR, like all other Forex pairs, is going to see choppy trading in the days ahead. The upwards movement in the currency pair might entice traders to start believing the USD/MYR has been overbought, but this may only prove true in the months ahead. For the moment intraday speculation remains difficult and nervous conditions will persist. The price velocity seen upwards in the past two days in the USD/MYR has been fast. This is a signal that financial institutions are reacting to the notion the currency pair was still too low taking into consideration the unknowns that are ahead because of U.S economic data next week and the U.S election to come on the 5th of November.
Resistance levels have proven vulnerable the past couple of days.
There may be a temptation to try and sell at highs by day traders, but they should remain cautious and use risk managemen .
As the USD/MYR hovers near 4.3500, financial institutions are expressing fragile sentiment. Traders should not expect big moves lower until there is more clarity in global Forex.
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Current Resistance: 4.3530
Current Support: 4.3490
High Target: 4.3710
Low Target: 4.3390
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