Malaysian Ringgit (MYR) Indications For Solid Rebound

Malaysian Ringgit (MYR) Indications For Solid Rebound

Malaysian May trade figures continued to indicate towards a solid rebound. Exports in MYR terms rose sharply by 32 percent year-on-year while imports remained firm by rising 30 percent. Malaysia’s trade surplus alleviated slightly but stayed in healthy surplus territory. Elsewhere, the latest FX reserves for June rose slightly to USD 98.9 billion, enough to 7.9 months of retained imports and 1.1x short-term external debt.

Technical Analysis

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 4.32.

The projected lower bound is: 4.27.

The projected closing price is: 4.30.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 2 black candles for a net of 4 white candles. During the past 50 bars, there have been 23 white candles and 20 black candles for a net of 3 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 68.0850. This is not an overbought or oversold reading. The last signal was a sell 9 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 55.27. 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 18 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 51. This is not a topping or bottoming area. The last signal was a sell 4 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 27 period(s) ago.

Rex Takasugi – TD Profile

FOREX MYR= closed up 0.001 at 4.296. Volume was 2% below average (neutral) and Bollinger Bands were 35% narrower than normal.

Open  High   Low     Close  Volume
4.294  4.297  4.292  4.296  37

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

Moving Averages: 10-period   50-period   200-period
Close:                       4.30             4.29            4.37
Volatility:                2                   3                  4
Volume:                  30                 40                41

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 1.6% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of MYR= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on MYR= and have had this outlook for the last 14 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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