▪ MYR closed lower against the USD last week, primarily weighed by the extension of Movement Control Order 2.0 (MCO2.0) until 4 February amid surging COVID-19 cases. New virus cluster and lockdown measures in China's north provinces also pressured the local note.
▪ MYR may continue to trade lower this week on the back of the domestic COVID-19 situation and concerns that the government may impose strict SOP or lockdown. However, the persistent weakness of the USD and relatively higher Brent crude oil prices should continue to support the MYR.
▪ 5-day EMA signals a potential bullish comeback for MYR this week, with the local note predicted to appreciate slightly by 0.06% against the greenback from its closing price of 4.043 last Friday.
▪ The short-term technical outlook indicates that the USDMYR pair may test the support zone at (S1) 4.031 and then resume moving towards (S2) 4.018 level. However, the bullish MYR scenario may no longer be valid if the pair jump towards the (R1) 4.054 resistance level.
Source: Kenanga Research - 25 Jan 2021
Created by kiasutrader | Aug 26, 2024