MYR appreciated to its highest level since 4th February on the back of rising oil prices and Sino-US trade optimism. Furthermore, the local note had strengthened against a weakening US dollar amid underwhelming US economic data and rising COVID-19 infections in the US.
The relatively bullish sentiment supported by the improving prospects in the underlying fundamentals may provide support for the ringgit this week. Hence, there is a higher probability that MYR may go against the technical analysis and trade on a stronger bias this week as China's continued recovery could inject some confidence in Asian currencies. However, FTSE Russell's decision on Malaysia's WGBI status could be a game-changer for the ringgit.
Technical Analysis
EMA technical indicator suggests that the MYR may form a bearish trend, depreciating by 0.44% against the greenback to 4.132 this week.
A climb above (R1) 4.134 would expose the USDMYR to another resistance juncture near the (R2) 4.155 level. Else, a breach under (S1) 4.103 is needed to mark an extension of a bullish MYR trend.
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