USD/MYR Today 06/02: Steadies After Volatility (Chart)

(MENAFN- Daily Forex) The USD/MYR is near the 4.4350 ratio as of this writing having produced a slight upwards bit of momentum this morning, but the currency pair has also traded in a healthy correlation to the broad FX market.

After ripping higher early on Monday the USD/MYR touched the 4.5200 ratio, but intriguingly did not push values since in early and mid-January. Following the leap upwards on Monday which was part of the nervous wave of sentiment being generated in global Forex as President trump threatened to implement tariffs on Mexico and Canada, the USD/MYR started to produce incremental selling as nervous sentiment became more calm.

The downwards trend seen after this Monday's highs also correlated to the broad Forex market, showing the USD/MYR was walking in step with behavioral sentiment. By yesterday the USD/MYR was traversing lows of nearly 4.4100 and early this morning that level was tested again. The slight climb upwards the past couple of hours now has the USD/MYR situated near 4.4350 depending on the bid and ask Support and Speculative Trading

Support levels which were tested yesterday and early today did prove durable. But it is important to note that the last week of January did see trading below the 4.4000 level see sustained price action. The 4.3900 mark was flirted with rather consistently and challenged with lower values during the last week of January. However, near-term sentiment should take into consideration this was also during the Lunar New Year celebrations so trading volumes were questionable.

The ability of the USD/MYR to return back to its known price range, the 4.4400 to 4.4200 prices have acted as a technical magnate for speculative traders since early December. Yes, there has certainly been price velocity higher but the current price level of the USD/MYR has provided interesting support for nearly two months. So what happens next?

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The strength of the USD the past few months has been steadfast. The ability to return to known prices now after this week's early rush higher though shows the USD/MYR is likely considered to be within a fair market equilibrium which is likely to produce a test of current technical levels in the near-term. It is unlikely there is going to be a sudden shift of overly ambitious lows created this week, but support levels may continue to produce test near 4.4300 and slightly below this ratio.

• Tomorrow the U.S will release its U.S jobs numbers, but trading by that time in the USD/MYR will be nearly absent, which means a reaction might develop on Monday with some volatility in the currency pair.
• However, financial institutions continue to watch President Trump more than economic data in the near-term, behavioral sentiment will continue to rule into next week for the USD/MYR.

USD/MYR Short Term Outlook:

Current Resistance: 4.4390

Current Support: 4.4310

High Target: 4.4550

Low Target: 4.4120

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