▪ MYR eased against the USD last week, despite the recovery in oil prices. The weakness was mainly due to the favourable market sentiment around the greenback and a sharp spike in Malaysia’s unemployment rate.
▪ The positive tone surrounding the oil market is expected to uplift the commodity-linked currency from last week's loss. In addition, the news on possible bilateral travel bubble between Malaysia and six other 'green' countries will help to provide further support for the local note.
▪ EMA suggests a downward bias for MYR this week with the local note to depreciate slightly by 0.13% to 4.273 against USD from its closing price of 4.262 last Friday.
▪ Overall, the short-term technical outlook indicates MYR to trade within a range between 4.260 and 4.290. A support level is seen at (S1) 4.262, while resistance may test (R1) 4.278. However, we believe a breach above (R2) 4.288 is needed to reaffirm the bearish MYR setup.
Source: Kenanga Research - 22 Jun 2020
Created by kiasutrader | Aug 26, 2024