▪ MYR gained broadly following a rocky week as Brent crude oil rebound from its deepest price slump since February 2002. Furthermore, the US Federal Reserve’s move to expand its USD swap lines to boost global dollar liquidity is providing some support to the local note.
▪ The extension of Movement Control Order by another two weeks is expected to drag ringgit down on the back of slower economic activity. In contrast, USD is predicted to strengthen this week, driven by the rising demand of USD due to the failure of COVID-19 drug test and negative outcome from the recent European Union (EU) summit meeting.
▪ EMA sees MYR losing its momentum against USD this week, to decline 0.06% to 4.365 from its closing price of 4.363 last week.
▪ Overall, the technical outlook for this week shifts towards a bullish USD trend with a potential resistance at (R1) 4.384, followed by (R2) 4.406. A downward bias appears at (S1) 4.350, while a break below (S2) 4.338 could reinstate an upward trajectory for MYR.
Source: Kenanga Research - 27 Apr 2020
Created by kiasutrader | Aug 26, 2024