US Dollar May Reverse vs Philippine Peso as USD/MYR Rate Steadies
USD/MYR, USD/PHP, Malaysian Ringgit, Philippine Peso - Talking Points
- US Dollar recovers some ground versus Peso, Ringgit
- USD/PHP price outlook bullish on Bullish Engulfing
- USD/MYR consolidation persists, breakout due soon?
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USD/PHP Technical Outlook
The US Dollar continued losing ground against the Philippine Peso after USD/PHP once again broke under the key rising trend line from 2013. However, early signals are offering a warning that the downtrend from August could come to an end. On Wednesday, the US Dollar left behind a Bullish Engulfing candlestick pattern on the daily chart below.
This is a sign of indecision and with upside confirmation, may pave the way for a test of near-term falling resistance from September – pink line below. Just above it sits a key psychological barrier between 51.59 to 51.69. Otherwise, resuming the downtrend places the focus on the former high from December 2017 at 50.79. A close under exposes the 78.6 percent Fibonacci extension at 50.58.
For more ASEAN content, check out my Singapore Dollar and Indonesian Rupiah technical outlook!
USD/PHP Daily Chart
USD/MYR Technical Outlook
Even though the Malaysian Ringgit broke under a rising trend line from July last week, the US Dollar has maintained its ground against the currency. Thus, USD/MYR continues to trade sideways under key resistance which is a range between 4.1950 to 4.2000. Sitting just below is the September low at 4.1630 which may hold as support.
Moreover, the Head and Shoulders bearish reversal pattern still holds. The right shoulder has maintained its formation since the middle of September. Still, USD/MYR sits under the near-term rising trend line which may pave the way for a test of 4.1630. Falling through that point would expose what could be potential rising support from March. Otherwise, invalidating the Head and Shoulders exposes the August highs.
USD/MYR Daily Chart
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--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.