Little has changed as far as the USD/RM’s near-term and mid-term technical outlooks are concerned. The only notable development of late is that the RM had just charted a new high since the introduction of the managed-float system. Not even the strong support floor created at the RM3.07/USD level could defend the selling pressure on the USD.
Our view towards the USD/RM currency market has been relatively straightforward. Thus far, we have been using the downtrend channel for guidance. Although the USD rebounded in November, the rebound only managed to reach the middle point of the downtrend channel. This means that the November rebound was just a bearish rebound within a downtrend. From then, the USD started to depreciate against the RM again.
Hence, with reference to the same downtrend channel drawn in the daily chart many months ago, the USD is expected to continue depreciating against the RM until the channel is violated. Hence, we feel that that the USD/RM outlook will remain firmly bearish as long as USD/RM continues to trade inside the downtrend channel.
From the current level, there is immediate resistance at the RM3.07/USD level, followed by the RM3.11/USD and RM3.19/USD levels. To the downside, there is immediate support at the recent low of RM3.06/USD level.
Our view towards the USD/RM currency market has been relatively straightforward. Thus far, we have been using the downtrend channel for guidance. Although the USD rebounded in November, the rebound only managed to reach the middle point of the downtrend channel. This means that the November rebound was just a bearish rebound within a downtrend. From then, the USD started to depreciate against the RM again.
Hence, with reference to the same downtrend channel drawn in the daily chart many months ago, the USD is expected to continue depreciating against the RM until the channel is violated. Hence, we feel that that the USD/RM outlook will remain firmly bearish as long as USD/RM continues to trade inside the downtrend channel.
From the current level, there is immediate resistance at the RM3.07/USD level, followed by the RM3.11/USD and RM3.19/USD levels. To the downside, there is immediate support at the recent low of RM3.06/USD level.
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