The USD/MYR has returned the past two days to its lower price ratios and is battling known support levels, but financial institutions may be tempted to lean into lower price targets in the near-term.
The USD/MYR is near the 4.2200 mark as of this writing. The currency pair is an attractive speculative Forex asset for day traders. However, because of the lower volumes and relatively slight window for trading every day because of limited hours, the USD/MYR is not particularly easy to trade.
The USD/MYR has correlated well to the broad market in many respects. Early this week the USD/MYR did see price velocity upwards when the 4.2925 ratio was touched, this as financial institutions were worried about implications in the Middle East conflict which gripped international news the past week and a half. However, now that calmer heads have prevailed the USD/MYR has found its bearish leanings still in effect.
Support Levels and Outlook in the USD/MYR
A look at a one and three month chart show the USD/MYR has touched its current values over these periods. The USD/MYR has been able to show a belief within financial institutions that lower realms may be expected via mid-term outlooks, yet not enough impetus has come into the Forex market for the currency pair to penetrate known support levels. The 4.2000 level continues to work as a key barometer and is causing pushback for the time being as an inflection point.
Financial institutions may be concerned about potential implications from tariff negotiations causing problems for the Malaysian Ringgit, but actually this may be a false narrative. The USD has been weaker in Forex against most major currencies and the USD/MYR has correlated rather well to the broad market. Today U.S GDP data will be released and this could impact the USD/MYR early on Friday when the currency pair opens for trading during the Asian trading session.
Speculative Betting on the USD/MYR Near-Term
Traders tempted to look for lower realms in the USD/MYR in the near-term cannot be blamed. If U.S growth numbers later today prove to be lackluster once again, this will likely give the U.S Federal Reserve an additional reason to consider cutting the Federal Funds rate in late July.
- There is a chance that a rate cut from the Fed has already been priced into the USD – which has been showing weakness rather consistently since early April of this year.
- Reversals higher in the USD/MYR do remain a constant danger, so risk management is needed.
- Perhaps traders who are inclined to pursue lower price action in the USD/MYR will want to use moves that touch perceived resistance in order to sell the currency pair.
- The 4.2100 to 4.2000 targets for the USD/MYR near-term do look like potential targets for speculators, but they might want to create take profit orders slightly above these ratios to make sure they cash out of the currency pair in a thin market.
USD/MYR Short Term Outlook:
Current Resistance: 4.2260
Current Support: 4.2180
High Target: 4.2410
Low Target: 4.2050
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