Last week, USDMYR was tagging along the lower support line of downward sloping channel as it inch slowly downward. The recent ringgit strength could be attributed to the flow of hot money into Malaysian market taking advantage of the dollar-carry and yen-carry trades.
The USDMYR is now at grossly oversold position with both lags flat at the bottom and MACD below zero level for the whole week.
Expecting a reaction upward this coming week with a resistance level at 3.2900 and the next resistance at 3.3000.
A break of current low is expected not to push the pair much lower.
