Fundamental Overview

▪ MYR has gone through its best week since closing near the 4.11 level on Sep 18th , following a 0.64% weekly gain, supported by the risk on mode post-US election and record expansionary Federal Budget for 2021. The positive external sentiment and BNM’s decision to keep the OPR unchangedhas helped to anchor ringgit’s strength.

▪ The USD would be volatile and bias on weakness following Joe Biden’s contested presidential election victory over incumbent Donald Trump. Hence, MYR may fluctuate between 4.10-4.20 level in the near term. Also, possible upbeat September industrial production data release this week may offer some support to MYR.

Technical Analysis

▪ 5-day EMA indicates that MYR may weaken this week and depreciate by 0.42% to 4.147 level.

▪ MYR is expected to trade lower this week against the USD, with the pair's immediate resistance level at (R1) 4.153, followed by (R2) 4.176. Alternatively, the pair may test (S1) 4.118, while a break below (S2) 4.106 should reaffirm MYR bullish trend.

Source: Kenanga Research - 9 Nov 2020