The USD/MYR is trading near the 4.0850 ratio as of this writing, a low during yesterday’s price action attained the 4.0770 mark which had last been seen in March of 2021.
Traders who have had the tenacity to pursue the lower trend in the USD/MYR have likely been rewarded. Although volumes in the currency pair are not large, the USD/MYR is a strong emerging market trading vehicle which has offered speculators an opportunity to take advantage of an incremental lower trajectory. The USD/MYR is near the 4.0850 vicinity as of this writing.
Since breaking below the 4.1000 level last Friday the USD/MYR has not looked backwards. Price action has been able to sustain selling, and financial institutions appear to have a positive outlook regarding the strength and capabilities of the Malaysian Ringgit.
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Patience a Virtue in the USD/MYR
Traders looking for an immediate whiff of volatility in the USD/MYR may find betting on the currency pair rather difficult. The USD/MYR does not move at lightning speed, this is a race between the tortoise and the rabbit. Yes, a trader who uses a large amount of leverage could wager on the USD/MYR and get an instant bang – but using a lot of leverage creates the danger of tiny moves in the currency pair that just as likely can cause a trader to lose money just as fast as they can find success.
USD/MYR trading for those without deep pockets who want to pursue downside when circumstances look good, should practice a conservative approach. However, they will also have to be aware that it is likely they could be charged for carrying the USD/MYR overnight. So while the downside may look attractive and like an opportunity for making money, it carries risks like all other Forex pairs due to its unique characteristics. Yes, the Malaysian Ringgit is a strong emerging market currency, but its limited volume and times that it trades makes it a specialist enterprise in many circumstances. There is also often a rather wide spread on display between bids and asks, entry price orders are urged for day traders.
Outlook and Near-Term Trading
The holiday trading season is almost upon the broad Forex market. The USD/MYR will certainly continue trading during this time, but volumes will get smaller than normal.
- The currency pair should see standard trading volumes this Friday before going into the weekend.
- However as financial institutions start to disappear for the holidays, financial institutions in Malaysia could turn cautious over the next couple of weeks.
- The downside momentum in the USD/MYR has been solid.
- The ability to break below the 4.1000 mark and sustain lower depths is impressive.
- The 4.0000 may become a legitimate target in the minds of financial institutions.
- The USD/MYR last traded around 4.0000 in a sustained manner in April of 2018.
- Day traders must not get overly ambitious, the USD/MYR moves at a snail’s pace compared to many of the bigger currency pairs.
- Solid risk taking tactics are needed when trading the USD/MYR.
USD/MYR Short Term Outlook:
Current Resistance: 4.0870
Current Support: 4.0820
High Target: 4.0950
Low Target: 4.0760
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