Malaysian Ringgit Technical Outlook

Malaysian Ringgit – Medium-term weakness to 3.39 and 3.55

usdmyrTechnical Ratings:
Support: MYR3.2500 - 3.3335
Resistance: MYR3.3350 - 3.4000
RSI: 63.82-level. The RSI inched down.
Stochastic: 94.37-level. Stochastic sell signal.
MACD: +0.038-level. MACD buy signal.
MA: Above the 18 and 40 WMA. Bullish daily, weekly and monthly US Dollar trends.

Strategy:  The  Malaysian  Ringgit  traded  in  a  slightly  firmer  range  against  the  US  Dollar  and  ended  at  3.3335  last  week, after  the  previous  week’s  volatility. The  USD/MYR’s  recent  swings  are  3.3675  (high),  2.9335  (low),  3.2380  (high),  2.9510 (low), 3.3377 (high) and 3.1423 (low). The Malaysian Ringgit will remain weaker against the US Dollar in the medium term despite last week’s firm MYR action. It was at its lowest point against the US Dollar at 3.3377 in Aug 2013 and saw a high of 3.1225 recently. The local unit will remain volatile and weak against the US Dollar this week. As the US Dollar remains firmer  against  regional  currencies  overall,  it  would  be  better  for  importers  to  hedge  USD  forwards  against  MYR  in  the medium. Our upside targets for the Greenback are now placed at 3.3900 and 3.5500.

by MIB