Malaysian Ringgit Technical Outlook
Malaysian Ringgit – Medium-term weakness to 3.39 and 3.55
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.