▪ MYR closed last week with gains against USD as investors were uncertain on US stimulus deal. However, MYR found support risk on market sentiment amid President Trump’s health condition and a rebound in Brent crude oil price as US Gulf Coast braces for Hurricane Delta.
▪ The local note could reverse its uptrend against the greenback if local COVID-19 cases continue to skyrocket and Malaysia's political power struggle deepens further. Beyond that, the direction of the MYR is expected to be influenced by crude oil prices, US fiscal stimulus headlines and US presidential campaign developments.
▪ Based on the 5-day EMA technical indicator, MYR could weaken this week and depreciate by 0.33% to 4.148.
▪ Technical-wise, MYR is expected to trend lower this week against the USD, with the pair's immediate resistance awaits at (R1) 4.149, followed by (R2) 4.163. Conversely, the pair may test (S1) 4.128, and a sustained break below (S2) 4.121 should reaffirm MYR bullish trend.
Source: Kenanga Research - 12 Oct 2020
Created by kiasutrader | Aug 26, 2024