▪ MYR continued its bullish momentum last week, appreciating against a weaker USD, on the back of COVID-19 vaccine optimism and positive local economic sentiment. However, the momentum was partially pared by faltering risk appetite as escalating Sino-US tensions weighed on sentiment.
▪ Upward bias to persist on the local note this week as the greenback is losing its lustre as a safe haven currency amid continued uncertainty surrounding the COVID-19 pandemic and US-China conflict. In addition, MYR is expected to test below the 4.25 level ahead of the Fed’s interest rate decision meeting.
▪ EMA signals that MYR will retain a bullish trend, trading marginally higher against the USD by 0.05% to 4.261 this week.
▪ The short term technical analysis indicates a bearish USD trend. A breakout below the support level of 4.256 (S1) could propel the pair towards another check at 4.248 (S2). Otherwise, a breach above (R2) 4.271 is needed to negate the current bullish MYR setup.
Source: Kenanga Research - 27 Jul 2020
Created by kiasutrader | Aug 26, 2024