Philippine Peso, USD/PHP, Malaysian Ringgit, USD/MYR – Speaking Factors
US Greenback prolonged losses towards the Philippine Peso and Malaysian RinggitUSD/PHP could possibly be trying a reversal of the dominant uptrend from 2013USD/MYR slipping beneath rising assist from 2014, extra losses could also be forward
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Philippine PesoTechnical Outlook
As anticipated, the Philippine Peso continued its advance towards the US Greenback for the reason that center of final week. This additional pushed USD/PHP beneath the long-term rising development line from 2013 – pictured on the weekly chart under. The basic backdrop behind this transfer has been rising hopes of a US-China commerce deal, which have fueled capital flows into Rising Market and ASEAN nations.
Such a catalyst could possibly be key to sustaining what could possibly be a reversal of the dominant uptrend that has prevailed for over six years. But, there may be nonetheless potential for an upside reversal. USD/PHP has been slowly descending inside a falling channel – blue space under. A take a look at of the ground may spark an increase to the ceiling and the rising development line. In any other case, resuming declines opens the door to testing lows from the earlier 2 years.
For extra ASEAN content material, try my Singapore Greenback and Indonesian Rupiah technical outlook!
USD/PHP Weekly Chart
Zooming in on the USD/PHP each day chart, costs have shaped a possible backside at 50.40 which sits slightly below the 78.6 p.c Fibonacci extension. A each day nearer decrease exposes 49.98. For a near-term reversal, regulate the falling development line from late September – pink line under. A each day shut above it may open the door to testing highs from October 25 (51.29 – 51.34).
USD/PHP Day by day Chart
USD/PHP Charts Created in TradingView
Malaysian Ringgit Technical Outlook
Just like the Philippine Peso, the Malaysian Ringgit can be specializing in a key trendline break versus the US Greenback. Trying on the USD/MYR weekly chart, the forex pair is on the verge of taking out a rising assist channel from 2014. Additional draw back closes may signify a reversal to come back of the dominant uptrend that has prevailed for over 5 years.
USD/MYR Weekly Chart
Trying on the USD/MYR each day chart, the Malaysian Ringgit closed beneath a near-term rising assist line from March. This adopted persistent consolidation for the previous roughly two months. Costs have additionally discovered a backside at four.1290 with near-term resistance at four.1448. A each day shut beneath the previous may open the door for revisiting July lows the place assist may stand at four.1070.
Within the medium-term, a descending channel may hold the downtrend from late August intact. I’ve marked this psychological barrier because the pink parallel falling development traces on the chart under. Closing above this channel may pave the best way for a retest of the important thing vary between four.1950 – four.2000.
USD/MYR Day by day Chart
USD/MYR Charts Created in TradingView
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— Written by Daniel Dubrovsky, Forex Analyst for DailyFX.com
To contact Daniel, use the feedback part under or @ddubrovskyFX on Twitter