Fundamental Overview

▪ Ringgit traded lower last week on the release of record low economic data (CN 1Q20 GDP, US retail sales and industrial production) and failure of OPEC+ production cut deal to pacify investors who were worried over an even larger slump in global oil demand. These outweighed appreciatory boost from the unveiling of US reopening plan.

▪ MYR will remain volatile but with slight upward bias against the USD, as COVID-19 situation showed propitious signs, with recent number of new positive cases registering at among the lowest since the implementation of Movement Control Order.

Technical Analysis

▪ EMA suggests that MYR is gaining momentum to strengthen against USD by 0.33% to 4.356 from its closing price of 4.370 last week.

▪ Overall, short term setup outlook shifted towards a bearish USD trend this week. From here, the (S1) 4.337 support level is critical as a break here could signal a deeper retracement towards (S2) 4.304. We believe a breach above (R1) 4.390 is needed to negate the current bearish setup.

Source: Kenanga Research - 20 Apr 2020