▪ MYR extended its gain for the second straight week. It closed higher last Friday as the dollar tumbled on risk-seeking environment amid easing lockdown among emerging countries.
▪ The local note is expected to gain further as Malaysia set to enter the recovery movement control order (RMCO) phase and supported bytheNational Economic Recovery Plan (PENJANA).In addition, a rebound in Brent crude oil price as OPEC+ had agreed on extending record output cuts to end of July, reaffirming ringgit strength going forward.
▪ EMA signals a potential bullish comeback for USD this week, with the local note expected to depreciate by 0.27% against the greenback from its closing price of 4.267 last Friday.
▪ The technical outlook for USDMYR trend this week remains to the upside, with an immediate resistance seen at (R1) 4.302 level where a breach will aim at the (R2) 4.338 level. Conversely, a downward reversal may drive the pair towards the (S2) 4.227 level, should the pair tilt below the (S1) 4.247 support level.
Source: Kenanga Research - 9 Jun 2020
Created by kiasutrader | Aug 26, 2024