Fundamental Overview

▪ Ringgit plunged further against the USD, reaching its lowest level since April 2017, triggered by continued slide in crude oil prices and worsening COVID-19 condition, with ten fatalities recorded and a spike in number of positive cases, prompting the government to declare a Movement Control Order (MCO) from 18 to 31 March.

▪ In spite of synchronous easing by major central banks, the ringgit will likely remain biased on the downside as the Ministry of Health expects the COVID-19 situation to worsen this week, with tighter enforcement of MCO, exerting pressure on the economy.

Technical Analysis

▪ EMAshows thatUSDupside momentum is fading, promptingMYR to likely rebound slightly by 0.64% against USD this week from its closing price of 4.395 last Friday.

▪ Technically, the overall chart setup remains bullish for MYR. We see an immediate support at(S1) 4.330,though a break below(S2) 4.266 could be a tipping point.On the upside, a break above (R1) 4.436 is needed for a USD rally to take shape.

Source: Kenanga Research - 23 Mar 2020