Malaysian Ringgit (MYR) Come Back

Malaysian Ringgit (MYR) Come Back

The Malaysian ringgit rebounded against the US dollar on Thursday (Jul 27), benefitting from the Federal Reserve’s decision to keep its interest rates low longer, a dealer said.

At 6pm local time, the local unit stood at 4.2760/2790 against the greenback compared with Wednesday’s close of 4.2825/2865.

The dollar fell to a 2-1/2 year low against the euro and a 13-month trough against a basket of major currencies, higher oil prices had also helped boost the ringgit to be traded higher.

However, against other currencies, the local note was traded lower.

It fell against the Singapore dollar to 3.1471/1514 from 3.1401/1442 the day before and versus the yen it depreciated to 3.8377/8418 from 3.8281/8320 on Wednesday.

Technical Analysis

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 4.30.

The projected lower bound is: 4.26.

The projected closing price is: 4.28.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 20 black candles for a net of 4 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 42.8571. This is not an overbought or oversold reading. The last signal was a sell 22 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.24. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 31 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -97. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.

Rex Takasugi – TD Profile

FOREX MYR= closed up 0.003 at 4.280. Volume was 26% below average (neutral) and Bollinger Bands were 58% narrower than normal.

Open  High   Low    Close   Volume
4.275  4.280  4.275  4.280  29

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period   50-period   200-period
Close:                       4.28            4.28              4.37
Volatility:                2                  3                    4
Volume:                  40                39                  37

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX MYR= is currently 2.1% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of MYR= (mildly bearish). Our trend forecasting oscillators are currently bearish on MYR= and have had this outlook for the last 2 periods.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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