USD/MYR Analysis Today - 22/01: Selling Develops Near-Term

(MENAFN- Daily Forex)

• After testing higher ground that produced trading test around the 4.5000 level from the 6^th until the 20^th of January, the USD/MYR has suddenly been able to demonstrate some selling and as of this writing is near the 4.4440 level.
• Global Forex conditions remains cautious and speculators should expect more choppiness in the near-term to be a feature, this includes the USD/MYR.

Financial institutions remain concerned about a lack of clarity and the USD although it has shown signs of being slightly weaker movement the past couple of days against major currencies does remain challenging. Looking for a sustained amount of downwards price action in the USD/MYR might be too optimistic. President Trump has promised that he is going to start implementing tariffs against some nations in the coming week and this will likely cause a reaction in all of Forex.

USD/MYR and Speculative Ambitions

The USD/MYR has suffered a strong mid-term bullish streak upwards. The fact the USD/MYR has now been able to show some ability to dip lower is positive for sellers, but they should not look for overly ambitious targets below. There is a chance that more reversals are coming in the near-term. The U.S will not produce any significant economic data which is going to shake Forex in the near-term, this means the USD/MYR will trade according to risk sentiment being generated regarding outlooks of financial institutions.

Speculators should use quick hitting targets in the USD/MYR that seek limited pip movement. If a trader doesn't overleverage their positions and has the ability to pay for overnight charges in the USD/MYR, they may have a better chance of taking advantage of movements they foresee in the currency pair, but many retail traders need to understand the costs involved before making such wagers. Support around the 4.4400 level will be of interest.

Lower Moves and Support Around 4.4000

The USD/MYR does look overbought, but most major currencies paired against the USD are in the same tough position. Risk adverse attitudes have created a strong USD since the end of September in most of Forex. Looking for downwards movement in the USD/MYR may be appealing and the 4.4000 level may look like a natural target, but it is likely too optimistic short-term.

• Traders should anticipate more choppiness in the near-term as financial institutions still have their outlooks tested in the coming days.
• President Trump has proven already that he intends on carrying through with political promises, and it is a certainty he will begin to ratchet up his rhetoric regarding tariffs in the coming days.
• This will likely cause near-term volatility and the USD/MYR will not be immune.

USD/MYR Short Term Outlook:

Current Resistance: 4.4480

Current Support: 4.4400

High Target: 4.4570

Low Target: 4.4310

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