The USD/MYR continues to touch the higher part of its mid-term price range as the New Year holiday has passed, but global financial institutions largely remain away from trading until next week.
Speculators who have open positions in the USD/MYR at this time and find their trading screens rather quiet should not be perplexed. Global financial institutions remain largely away from Forex. Yes the New Year’s holiday has ended, but many large trading offices will remain shuttered until the beginning of next week. However, later today there may start to be some price action seen in Forex, but for the USD/MYR this may mean that not much happens until early tomorrow morning.
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The USD/MYR continues to traverse near mid-term highs. The price of the currency pair for the moment is around 4.4780, but speculators need to understand because of the limited trading volumes currently that the spreads between bids and asks are wide. Traders should use entry price orders today in the USD/MYR. Quiet trading should be expected in most cases today.
Full Trading and Next Week’s Action in the USD/MYR
Full trading volume will not return until next week and that is when the USD/MYR will see a reaction to the past two weeks of trading which have resulted in the currency pair traversing higher values. Global financial houses remain nervous regarding outlook. The USD/MYR has correlated to the global Forex market as USD centric strength has been seen across the board. The weakness in the Malaysian Ringgit is a reflection of risk adverse buying into the USD and not some type of fatal flaw for the MYR.
Because full trading will only return next week, speculators of the USD/MYR need to be cautious today and tomorrow. The results demonstrated particularly today should be looked at with scrutiny. Tomorrow’s price action will pick up a little, but until Monday and Tuesday of next week a true barometer of behavioral sentiment in Forex will not be known regarding near-term perspectives.
USD Centric Price Action and the Return of Data
Next Friday the U.S will release its Non-Farm Employment Change numbers. This data will be one of the first true data points in the past couple of weeks which will impact Forex including the USD/MYR. The higher elements of the USD/MYR do look overbought, but betting against the trend for the moment remains dangerous because of fragile sentiment globally.
- The next couple of weeks are likely to produce more nervousness particularly as President-elect Trump gets ready to take official control of the U.S White House.
- Speculator should continue to look for quick hitting trades in the USD/MYR and not get overly ambitious, particularly today and tomorrow.
- Next week’s trading will see the USD/MYR return to normal trading conditions.
USD/MYR Short Term Outlook:
Current Resistance: 4.4795
Current Support: 4.4750
High Target: 4.4805
Low Target: 4.4680
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