USD/MYR Finds Poise Even As Bearish Signals Keep Building, Key Palm Oil Data Eyed
Spot USD/MYR dropped below key support from Oct 27 low of MYR4.7028 Wednesday, amid solid performance from Asia EM FX (ex-yuan). The rate thus completed a near-term double top pattern, which reinforces the bearish signal provided by a bearish failure swing in the RSI.
- The pair last deals +103 pips at MYR4.7028, re-testing the neckline of the mini-double top formation. Should that level give way, bullish focus would turn to Nov 4 cycle high of MYR4.7495. Bears set their sights on the 50-DMA, which kicks in at MYR4.6293.
- Palm oil futures fell for the second consecutive day Wednesday, as participants positioned ahead of the release of monthly Malaysian Palm Oil Board report, which will hit the wires at 12:30 MYT/04:30 GMT. There are concerns that the second-biggest producer may have accumulated more palm oil stockpiles than previously expected after an association of growers estimated that October's output was better than anticipated.
- Domestic headline flow remains dominated by GE15 matters.