▪ MYR continued its downtrend against the USD as escalating tensions between Washington and Beijing along with fears over second wave of infections, weighed on investors’ sentiment. However, the effectiveness of Malaysia’s COVID-19 measures has helped to alleviate the downward pressure on the local note.
▪ The talk of a new Cold War between the US and China coupled with oil price volatility and COVID-19 pandemic uncertainty will continue to wreak havoc on the global economy, pushing MYR to trade lower against the USD this week.
▪ Based on EMA technical indicator, MYR is expected to rebound marginally by 0.09% to 4.359 this week, indicating a potential reversal for the local note.
▪ Technical wise, the outlook for USD this week points to a downtrend with a support level at (S1) 4.348 and (S2) 4.334. Likewise, any significant dollar catalysts may push the greenback upward above the (R1) 4.374 level.
Source: Kenanga Research - 27 May 2020
Created by kiasutrader | Aug 26, 2024