Malaysian Ringgit (MYR) Falls Against US Dollar ($)(MYRUSD)

Malaysian Ringgit (MYR) Falls Against US Dollar ($)(MYRUSD)

Foreign investors are still underrepresented in Malaysia’s (EWM) bond and equity markets. With foreign inflows into emerging markets at 2006 peaks and predicted to touch $970 billion this year, Malaysia has immense potential for growth. “Foreign ownership in Malaysia’s equity and bond markets is still relatively low compared to historical levels. Bursa Malaysia’s benchmark index is still 100 points below the record,” said Danny Wong, CEO, Areca Capital. In May 2017, foreign holdings in Malaysian debt securities rose to RM195 billion from RM185 billion in April, indicating foreign investors are turning towards Malaysia.

  • Pair is currently trading around 4.2775.
  • It made intraday high at 4.2825 and low at 4.2725 levels.
  • Intraday bias remains bullish till the time pair holds key support at 4.2640 marks.
  • A sustained close above 4.2760 will drag the parity up towards key resistances around 4.2870, 4.3030 and 4.3259 marks respectively.
  • Alternatively, reversal from key resistance will take the parity back around 4.2640, 4.2218, 4.2005 and 4.1915 levels thereafter.
  • Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 4.31.

The projected lower bound is: 4.25.

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 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 18 white candles and 26 black candles for a net of 8 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 93.1224. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 46.71. 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 3 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 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 buy 12 period(s) ago.

Rex Takasugi – TD Profile

FOREX MYR= closed up 0.006 at 4.282. Volume was 39% below average (neutral) and Bollinger Bands were 43% narrower than normal.

Open   High    Low    Close   Volume
4.279   4.282  4.279  4.282  23

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

Moving Averages: 10-period   50-period   200-period
Close:                        4.27            4.32             4.35
Volatility:                 3                  4                  5
Volume:                    39               46                47

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= gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FOREX MYR= is currently 1.6% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of MYR= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on MYR= and have had this outlook for the last 66 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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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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