above: USD/MYR Chart (click to enlarge)
Strategy: The Ringgit traded in a weaker range against the USD and ended at 3.0330 last week after some stock market profit-taking set in. The recent key swings of the USD/MYR are 3.3675 (high), 2.9600 (low), 3.0695 (high), 2.9335 (low), 3.2380 (high), 2.9873 (low), 3.2105 (high), 3.0032 (low) and 3.1410 (high). The USD/MYR may trade towards its resistance levels, but with further downward bias eventually. Some strength seems to have emerged for the MYR in the medium term.
However, the Ringgit saw minor temporary weakness over last fortnight, with prices revisiting the previous trend-line support zone.
Support: MYR2.9510 –3.0300 Resistance: MYR3.0330 -3.0900
RSI: 44.44 level. The RSI inched up.
Stochastic: 33.68 level. Stochastic buy signal.
MACD: -0.014 level. A clear MACD sell signal.
MA: Below the 18 and 40 WMA. Weekly and monthly USD downtrends.
by Maybank IB