Malaysian Ringgit – Medium-term USD upside to 3.47 and 3.54
Strategy: The Ringgit traded in a narrower range against the USD and ended slightly firm er at 3.2915 last week. Some selling emerged as USA delayed the Syrian strikes and this defused war tensions. 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), 3.1410 (high) and 2.9510 (low). The USD/MYR will trade towards its resistance levels in the medium to longer term. The MYR remains very weak against the USD. A move and sustained break beyond the 3.2400 resistance will target 3.4500, 3.4700 and 3.5400 in the medium term. Temporarily, the local unit may gain ground against the USD on profit-taking.
by Maybank IB