The previous week, USD/MYR has a high correlation with USD/SGD but early of last week USD/SGD showed more strength than USD/MYR. By the end of the week with US dollar moving downward, both pairs have moved in tandem. US dollar depreciation could be as resulted of an impasse state of US dolar as when the recent downturn in equity markets should boost the safe-haven Greenback against other currency instead the markets seem all too willing to sell US Dollars at any sign of trouble in US domestic economy.
USD/MYR has been moving within the descending channel. Overall weakness in US dollar against other curries has pushed the pair below the 38.2% retracement.
For the coming week, I expect the pair to move downward testing support at 1.3189. Resistance is at 3.248.
