Upwards momentum has struck the USD/MYR in the past day, this after the currency pair achieved a low early on Wednesday around the 3.9030 mark. The USD/MYR continues to swim within long-term lows, but since flirting with the 3.8780 ratio before the Iranian war began it has not managed to puncture the late February support levels.
Day traders who are tempted to pursue bearish wagers in the USD/MYR certainly have enough logical reasons for the idea, but perhaps remaining conservative due to the ongoing Middle Eastern conflict is also a worthwhile suggestion. To add intrigue this morning, it has been reported in Malaysia that the trade minister of the nation has said the deal with the U.S which had included tariff agreements and compromise is now null and void.
Malaysia Economy and Trade Deals
Malaysia apparently wants clarity regarding the trade agreement from the U.S on what specific items should be considered part of arrangement, this after the U.S Supreme Court ruled the tariff deals wrong. Perhaps this was a reason for some slightly bullish action in the USD/MYR in trading yesterday and today which is causing near-term highs. Yet, this might prove to be false narrative as global risk aversion moves through global markets.
The Malaysian Ringgit has certainly been one of the stronger emerging market currencies. The USD/MYR is not a high volume Forex pair, but financial institutions clearly remain steadfast regarding the lower realms via outlook. The move upwards generated yesterday for the time being may be treated as a prospective place by speculators to sell the USD/MYR when perceived resistance has been touched.
Near-Term Caution and the USD/MYR
In early trading this morning USD centric strength has been seen in the broad Forex market, but this is likely an out growth of caution stemming from the noise coming from the Middle East conflict regarding concerns about energy prices.
Malaysia continues to be seen in a positive light by investors globally and this is also helping the MYR facilitate plenty of strength.
The ability to sustain values below the 4.0000 level since the January is a solid vote of confidence from financial institutions.
Choppiness may continue to prevail the remainder of this week and into next, this a large players active in the USD/MYR likely find comfort in being conservative regarding their outlooks near-term.
Day traders may have an opportunity to take advantage of slight moves, but entry price orders and solid take profits targets should be used.
Being overly ambitious under present conditions due to the Iranian war could prove costly for traders.
USD/MYR Short Term Outlook:
Current Resistance: 3.9415
Current Support: 3.9370
High Target: 3.9520
Low Target: 3.9180