Observation: a) Chart pattern: - Price is forming a Head & Shoulder (HNS) pattern with support above the Neckline. - We can see that the formation of the 2nd Shoulder which has already peaked. - The distance between the Head and Neckline is around MYR0.6532 (or 6532 pips). b) Trend: - As priced has already peaked on the 2nd shoulder, we now see it is entering into a Downtrend.
Remarks: - Based on the above observation, we can expect the Ringgit to go below MYR4/USD (between end March - end May'19). - Further to that, we can expect MYR to grow even stronger once it breaches the Neckline (between mid May - early Sep'19). - We shall continue to monitor the USD/MYR performance two (2) weeks from now.
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Observation: 7 March 2019
- Price close above the Purple Line but still within the Downtrend Line (Red). - The 40MA line is above the 20MA line. Price already broke the 20MA line on 5 March 2019. - At the time of writing, price is hovering below the 40MA line. - If price breaks the 40MA, we need to see it do a pullback and possibly make sideway movements to move out from the Downtrend zone. - If this is confirmed, then we may see USD getting stronger.