A stronger MYR/Ringgit recovery against USD?
Currency: USD / MYR
Screener: -
Observation date: 20 Feb 2019
Observation:
a) Chart pattern:
- Price is forming a Head & Shoulder (HNS) pattern with support above the Neckline.
- We can see that the formation of the 2nd Shoulder which has already peaked.
- The distance between the Head and Neckline is around MYR0.6532 (or 6532 pips).
b) Trend:
- As priced has already peaked on the 2nd shoulder, we now see it is entering into a Downtrend.
Remarks:
- Based on the above observation, we can expect the Ringgit to go below MYR4/USD (between end March - end May'19).
- Further to that, we can expect MYR to grow even stronger once it breaches the Neckline (between mid May - early Sep'19).
- We shall continue to monitor the USD/MYR performance two (2) weeks from now.
Screener: -
Observation date: 20 Feb 2019
Observation:
a) Chart pattern:
- Price is forming a Head & Shoulder (HNS) pattern with support above the Neckline.
- We can see that the formation of the 2nd Shoulder which has already peaked.
- The distance between the Head and Neckline is around MYR0.6532 (or 6532 pips).
b) Trend:
- As priced has already peaked on the 2nd shoulder, we now see it is entering into a Downtrend.
Remarks:
- Based on the above observation, we can expect the Ringgit to go below MYR4/USD (between end March - end May'19).
- Further to that, we can expect MYR to grow even stronger once it breaches the Neckline (between mid May - early Sep'19).
- We shall continue to monitor the USD/MYR performance two (2) weeks from now.
- Price close above the Purple Line but still within the Downtrend Line (Red).
- The 40MA line is above the 20MA line. Price already broke the 20MA line on 5 March 2019.
- At the time of writing, price is hovering below the 40MA line.
- If price breaks the 40MA, we need to see it do a pullback and possibly make sideway movements to move out from the Downtrend zone.
- If this is confirmed, then we may see USD getting stronger.