MYR plummeted to 4.14 against the USD last week as the USD index (DXY) rose to above the 92.0 level for the first time since 12th April in reaction to the Fed's hawkish shift. Despite the sharp fall, MYR recorded the smallest percentage of depreciation among most Asian currencies as the drop in ringgit was cushioned by firmer crude oil prices and improved sentiment due to increased local vaccinations.
Even though the 10-year US Treasury yield retreated back to 1.44% on Friday's closing after rising to 1.58% post-FOMC, the local note may resume its bearish momentum above the 4.14 level as the DXY may continue to move higher if the overall tone of Powell's testimony this week remained hawkish. Nevertheless, higher Brent crude oil price and Malaysia's accelerated vaccination program should limit ringgit's further depreciation.
Technical Analysis
On the contrary, our 5-day EMA indicator suggests that MYR might appreciate against the USD by 0.24% to 4.129.
Technical-wise, the pair faces an initial support at (S1) 4.123, followed by (S2) 4.106. On the other hand, should a sustained rise above (R1) 4.148 occur, it would affirm an extended bearish MYR trend.
Be the first to like this. Showing 0 of 0 comments
Post a Comment
People who like this
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 4848 views | 4 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....