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The USD/MYR has been in a strong bearish stance over the long-term and its current value realm remains within lower depths. However, the past week of trading has seen the USD/MYR start to incrementally challenge slightly higher levels. Yesterday’s ability to puncture the 3.9800 mark was noteworthy. It must be noted though that the USD/MYR has come off of the highs today and as of this writing is near the 3.9570 ratio depending on bids and asks.
The ability of the USD/MYR to traverse slightly higher the past handful of days corresponds to the broad Forex market that is seeing renewed USD centric strength. The U.S Federal Reserve is starting to have doubters filter in regarding its ability to maintain a dovish stance. In fact the Fed Meeting Minutes released recently show that its voting members are concerned about inflation being sparked because of higher fuel costs.
USD/MYR Correlating to Global Sentiment
Just before the start of the Iran war in late February the USD/MYR was trading within sight of the 3.8800 vicinity. On the last day of March the USD/MYR had climbed to nearly 4.0450. The USD/MYR has in large effect shown that it remains quite stable. The highs seen in late March were a reaction to nervousness within the global markets. The lower stance of the USD/MYR has held in many respects.
The USD/MYR is not a highly traded currency pair. Speculators may find opportunities as the USD/MYR moves in an incremental fashion and its rather controlled pace of trading is intriguing. The moves upwards yesterday tested values seen in late April, but its walk lower in the past handful of hours has brought the USD/MYR back to the middle of its mid-term (3 month) price range.
Iran Crisis and Trading Sentiment Generated
Trading in the USD/MYR has been rather consistent. The position of the currency pair appears to be a direct reference to the notions financial institutions have about current outlooks.
While many analysts fear an escalation of the Iranian situation, many large players and financial institutions appear to be wagering on a loud ceasefire remaining a fixture.
In other words, energy costs may remain high, but it doesn’t appear for the moment global markets are overly worried that a renewal of military conflict will begin soon.
If current conditions hold, the USD/MYR might find itself testing its proven price realm and technical traders may decide to wager per their perspectives on near-term support and resistance levels.
Reading sentiment momentum may prove important in the USD/MYR near-term.
USD/MYR Short Term Outlook:
Current Resistance: 3.9620
Current Support: 3.9550
High Target: 3.9740
Low Target: 3.9420