As expected, the USDMYR went into a correction albeit a minor bounced from 3.300. This showed that the downtrend of the pair since early February is still intact. For the past three days the pair was bouncing above support at 3.2910 on the going saga of Greek debt and the European Union recation. It seems that Greece will saw a limited prospects for euro-zone assistance. The rhetoric of euro-zone finance ministers is just providing the ‘moral’ support to help calm markets and drive Greece’s borrowing costs lower.
The coming week, the Greek debt problem will exert some influence on the ringgit. Technically, the pair is being governed by the downtrending line A1-A2. At current juncture with blue lag at the top and red lag at bottom and MACD Histogram at zero level, the price direction is still undecided. Any breakthrough of the trendline price will meet the resistance of 3.3278. A decisive break of 3.2910 support will enhanced the downtrend line A1-A2.
