- We are starting to see a little bit of a bounce in the US dollar against the Malaysian ringgit.
- And it's probably worth noting that we had recently approached the value pocket, if you will, between the 50% Fibonacci retracement level and the 61.8% Fibonacci retracement level.
Trend Traders Coming In?
Because of this, I think a lot of trend traders are starting to step in and try to pick this up. Furthermore, you have to ask questions about whether or not the overall global economy is still going to be moving forward and if it isn't. Smaller currencies like the Malaysian ringgit will get hit at this point. If we can clear the 4.70 level, then I think it's possible that we can clear the nine day EMA and finally go looking towards the 4.75 level.
If we break down below the 4.66 level, then we could see the US dollar start to fall apart, perhaps reaching down to the 4.60 level. This isn’t the likeliest of moves in the short-term but pay attention to how the US Dollar continues to see a lot of noise in general. This currency pair obviously is a small one, so be cautious with your positions sizing, as the markets can be greatly influenced by multiple factors – many of which retail traders don’t have access to, nor understanding of.
The Ringgit will also be a currency that will move along with a lot of smaller Asian currencies such as the Thai Bhat, Indonesian Rupiah, etc. Because of this, you are better off trading it from a swing trading attitude, and therefore a lot of patience will be necessary to benefit from the usual moves in this pair. The interest rate situation should also be monitored in general as well, especially in these exotic markets.
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