Technical analytics

USDMYR market technical outlook

Daily chart:

Bullish wave sharply dampened during attempt of testing upper Bollinger band (4.1917-4.1970 zone) and today market undergoes active correction to the downside. There is a very stiff support at middle Bollinger band (4.1565) ahead. But if it’s broken the pair will tumble deeper, to the 4.1221 region. This second target is mid-term of course: it took more than two weeks for buyers to climb from this zone to current levels. Now market probably will fall during the same period.

H4-chart:

Local downward wave might be stalled at support zone 4.1565-4.1625 (lower Bollinger band). We could consider deeper decline only in case this zone is broken (watch the red arrow).

H1-chart:

On hourly chart we can note local strategic support 4.1710 at lower Bollinger band. As we see in case of break the structure will get proportions of “Head-and-shoulders” pattern, that would drive to slump of the quotes. Therefore bulls probably will be poised to guard this zone. Both scenarios should be acknowledged as equiprobable.

Expectations:

Main scenario: Upward bounce off 4.1710 and growth in direction 4.1917-4.1970.

Alternative scenario: Break of support 4.1710 and fall towards 4.1400.

Trading recommendations:

  1. Above 4.1710 - longs towards 4.1917-4.1970.

  2. Below 4.1710 - shorts towards 4.1400.

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