▪ MYR closed higher against the USD last week, despite deepened Sino-US rift and declining Brent crude oil price. Asian currencies including ringgit are gaining momentum on dwindling interest on the USD on the back of risk-on environment.
▪ President Trump's press conference on China last Friday could worsen the US-China feud and increase the global risk aversion, prompting MYR to reverse course to trade lower against the USD this week.
▪ EMA signals that MYR will chart a marginal depreciation against the greenback by 0.12% to 4.352 this week, suggesting a reversal toward a bearish trend for the local note.
▪ The short term USDMYR technical biasfavours a bullish USD trend. A push above the resistance level of 4.357 (R1), may pave the way for another check at 4.368 (R2). Else, a downturn resumption would expose the pair to an immediate support at 4.341 (S1).
Source: Kenanga Research - 1 Jun 2020
Created by kiasutrader | Aug 26, 2024