Top pick for the day - Malaysian Ringgit (MYR)

Bottom picking again?

The Malaysian Ringgit (MYR) could potentially have seen a ST bottom at 4.4812 in September and we expect more strength in the coming weeks.

Why are we bullish on the MYR in the near term?

Firstly, we see the current move as being a correction following the completion of the US Dollar rally (MYR weakness) from 3.5388 in 5-waves.

The bearish divergence on its MACD and RSI supports the view that the MYR could potentially strengthen once more to above 4.08, possibly towards 3.88-4.00 next.

A strong move to below 4.2040 would put the MYR in a strong position to kick on from there.

However, more weakness to below 4.40 would likely signal that a new low is likely on the way, targeting 4.55-4.65 next.

Price movements in the next few days would hopefully give us a ‘clearer’ picture.

Longer term, expect the MYR to remain under pressure and the current strength is likely only a temporarily relief from the weakness we saw in 2015. (Read Report)

Read Related Report
1) Technical Analysis: Silver - Resumption of the down trend by Phillip Securities Research, published on 3 November 2015

Source : CIMB Research

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