US Dollar Tries Recovery vs Philippine Peso, Malaysian Ringgit
Philippine Peso, USD/PHP, Malaysian Ringgit, USD/MYR - Talking Points
- US Dollar climbed against the Philippine Peso, Malaysian Ringgit
- USD/PHP near-term downtrend remains intact for the time being
- USD/MYR downside breakout put into question following a bounce
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Philippine Peso Technical Outlook
The US Dollar has cautiously edged higher against the Philippine Peso, but more progress is needed to set the stage for an upside reversal. Keeping the USD/PHP downtrend intact is a falling trend line from late September – pink line on the chart below. Conveniently, prices have stalled on this psychological barrier as well as the late July lows. The latter is a range between 50.79 to 50.87.
A daily close above these opens the door to revisiting late-October peaks which range between 51.29 to 51.34. From a medium-term perspective, heading in this direction falls in line with the descending channel from 2018 after prices bounced on the floor of the chart pattern. Otherwise, resuming the downtrend could be back in play after a daily close under 50.40 heading towards 49.98.
For more ASEAN content, check out my Singapore Dollar and Indonesian Rupiah technical outlook!
USD/PHP Daily Chart
Malaysian Ringgit Technical Outlook
The US Dollar exhibited a similar turnaround against the Malaysian Ringgit over these past few days. USD/MYR has bounced after breaking under the rising trend line from March, leaving behind support at 4.1225. This puts the downside breakout into question as prices struggled to achieve confirmation. Still, the Malaysian Ringgit could regain ground if the support line comes back into play as new resistance.
In the event of a close back above it, keeping the downtrend intact may be a falling channel of resistance from August – pink parallel lines below. This may guide USD/MYR lower for a retest of current November lows. A daily close under this level opens the door to revisiting July troughs, extending the dominant downtrend that has been prevailing since August.
Read this week’s ASEAN fundamental outlook for further insight into MYR and PHP!
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.