The USD/MYR is near the 4.2270 mark as of this writing, the currency pair is lingering near values it saw in August and speculators pursuing wagers need to have patience while practicing targeted moves.
Consolidated trading continues to grip the USD/MYR as it trades near the 4.2270 ratio early this morning. Yes, the currency pair does move within the Forex market, but the tight range in the Malaysian Ringgit suggests that the Central Bank of Malaysia watches the their currency closely and keeps a rather firm grip on its movement.
Speculators pursuing the USD/MYR can find opportunities, but if they are conservative traders they will need to have patience to wait for the currency pair to hit a target. Day traders who use a lot of leverage will not have to wait long for results – winnings or losses – but the decision to use too much leverage in the USD/MYR is akin betting on a horse. Support levels around the 4.1820 mark late June has been rather durable.
Resistance Levels as an Ignition Point
The USD/MYR does show an ability to correlate with the broad Forex market, but given the demonstrated tight price range, traders also need to consider that the Malaysian government plays a strong role in maintaining what it perceives as a solid value band. Resistance near the 4.2325 ratio has proven to be rather consistent since late August.
Because of limited volumes and a tight trading window – available hours – to wager on the USD/MYR, day traders are always advised to use solid risk taking tactics if they want to pursue the currency pair. The U.S government shutdown has led to some chaos in the broad Forex markets, but volatility the past two weeks while having been seen has not been violent.
Opportunity in a Caution Landscape
The most troublesome day recently in Forex was last Friday when President Trump sounded alarm bells regarding tough negotiations with China about trade. However, the USD/MYR fell to the 4.2150 vicinity in early trading this Monday and then started to incrementally climb. In other words the trading range remained rather tight.
- The currency pair has maintained a rather polite range not only the past handful of days but the last three months.
- Traders who believe the USD/MYR can move from resistance levels and track lower should use take profit orders.
- Speculators should also understand that putting a take profit order above a perceived target – if pursuing downwards momentum via a selling position – may be the best tactic.
- Because even if the USD/MYR hits the lowest value of a support level it may not be there long enough for a position to be cashed out if it does not penetrate the price target.
- For the moment the range between the 4.2180 and 4.2310 levels should be considered by conservative traders.
USD/MYR Short Term Outlook:
Current Resistance: 4.2295
Current Support: 4.2210
High Target: 4.2315
Low Target: 4.2170
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