Fundamental Overview

• MYR jumped and closed higher on Friday last week amid positive sentiment surrounding crude oil prices after OPEC+ reached an agreement on their production deal. Also, MYR gained on improved global risk appetite due to increasing optimism on the COVID-19 vaccine.
• MYR is seen to whipsaw and potentially breach the 4.10 level on Monday due to Fitch's decision to downgrade Malaysia's sovereign debt rating to BBB+. However, global risk-on market sentiment on the back of rising crude oil prices and vaccine optimism may put the brakes on MYR's slide.

Technical Analysis

• According to EMA technical indicator, MYR is expected to depreciate slightly by 0.23% to 4.071 against the USD.
• Likewise, technical analysis indicates a bearish trend for MYR this week. The pair could reach the (R1) 4.073 and potentially towards the (R2) 4.084 level. Inversely, a rally towards the (S1) 4.057 level will invalidate the MYR bearish pattern.

Source: Kenanga Research - 7 Dec 2020