The USD/MYR has seen a resumption of selling the past couple of days and has sustained near-term lows while trading today, this after the U.S Federal Reserve’s FOMC Statement yesterday.
The USD/MYR is near the 4.4240 ratio as of this writing. The currency pair has been able to produce selling since touching a high on Monday near the 44.8000 vicinity. Although the USD/MYR turned in a bullish trend from last Tuesday when lows around the 4.4090 level was tested, followed by slight buying pressure, trading activity in the USD/MYR has been within a known range. Financial institutions have shown rather tranquil attitudes.
The selling seen the past couple of days and into this morning indicate that large players have become accustomed to their outlooks. No, the USD/MYR is not sustaining ratios next to what could be considered crucial psychological support near the 4.4000 level quite yet, but the currency pair’s more comfortable price range lower the past two weeks has correlated to the broad Forex market which has seen USD centric weakness.
Sentiment via the U.S Federal Reserve and Tariff Talk
The USD/MYR remained calm also in the wake of yesterday’s FOMC Statement via the U.S Federal Reserve. No timeline was given for additional interest rate cuts from the U.S central bank, except for hope expressed that there will be two more Federal Fund Rate decreases during this calendar year. However, financial institutions anticipated the cautious rhetoric from the U.S Fed and the USD/MYR did not see volatile price action late yesterday or early today.
It appears that financial institutions are still waiting for results regarding tariff negotiations between the U.S and a host of nations. The broad Forex market has digested tariff rhetoric and appears to have started discounting the risk adverse trading which dominated. The USD/MYR is within the lower elements of its three month technical charts because of this price action.
Waiting on Results and Wagering on Outlook
While day traders may want to wait on the results of tariff talk from the U.S, financial institutions are clearly cautiously wagering on their outlooks. The USD/MYR remains within stable territory, but does appear to be waiting for more impetus to create a stronger trend.
- The result of negotiations on tariffs and their results are not known, and they will not be known for a few more months.
- Meaning that the potential of choppy trading outcomes and a test of known ranges in the USD/MYR may linger.
- However, there is the temptation to believe financial institutions may want to wager on optimism.
- Perhaps optimism could come from risk appetite being shown in bullish U.S equity indices if it continues short-term.
- Looking for lower values in the USD/MYR feels like the correct wager, but it may be hard to produce a strong trend.
- Near-term speculators should brace for more tests of the known range and be willing to cash out profits quickly.
USD/MYR Short Term Outlook:
Current Resistance: 4.4270
Current Support: 4.4200
High Target: 4.4390
Low Target: 4.4150
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