May 27, 2013

Malaysian Ringgit Analysis – Some Recent Ringgit Weakness

malaysia ringgit analysis

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.

Technical Ratings
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