Tuesday, September 20, 2011

USDMYR: To Retest RM3.24 In The Medium Term

Ringgit outlook: USDMYR: To retest RM3.24 in the medium term

Since May, the dollar index (DXY) was consolidated within the range of 72-76 until recent breakout above the downtrend line resistance in early September to as high as 77.78 before closing at 77.09 yesterday, as the US$ rose against all its major counterparts amid falling stock prices, spurring demand for safer assets amid worsening Europe sovereign debt crisis.

Based on weekly chart, DXY medium to long term outlook remain bullish to retest the 81-83 resistance zones although it may face some short term profit taking consolidation near the daily 50-d SMA.

Correspondingly, the strong DXY and persistent foreign selling had weakened the Ringgit by 6% from RM2.937/US$ on 27 July to close at RM3.114 yesterday.

Based on the bullish weekly chart, Ringgit could depreciate further towards RM3.24-3.34/US$ in the medium to long term. However, as daily chart is indicating possible profit taking consolidations amid spiking MACD and RSI is approaching 80, Ringgit is likely to find some near term support at RM3.00-3.03.

Daily USDMYR: More Profit Taking Consolidations When RSI Hits 80
USDMYR 20-09-2011a

Weekly USDMYR: Bullish Medium Term Uptrend To Retest RM3.24-RM3.34 Region
USDMYR 20-09-2011



Source: HLebroking
Bloomberg

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...
 
Business