▪ MYR surged to a 29-month high last week driven by vaccine rollout optimism, US stimulus hopes and dovish US Fed. Continued rebound in Brent crude oil price which hit a level last seen prior to the start of the COVID-19 pandemic also boosted the local note.
▪ MYR is expected to strengthen this week underpinned by continued weakening of USD following mass COVID-19 vaccination campaign led by the US and UK as well as development in the US stimulus package.
▪ Contrary to MYR’s bullish trend momentum, based on the EMA indicator, the ringgit is expected to depreciate slightly by 0.13% to 4.045 this week, highlighting a potential profit-taking sell-off for the local note.
▪ From a technical perspective, the dollar is expected to see some upward momentum this week, with an immediate resistance observed at (R1) 4.053 level. On the other hand, a break below the (S1) 4.030 support level is needed to confirm MYR extended bullish bias.
Source: Kenanga Research - 21 Dec 2020
Created by kiasutrader | Aug 26, 2024