Chart of the day: Malaysian ringgit on way to basing
Malaysian Prime Minister Najib Razak dissolved parliament on Friday, paving the way for a general election in which he will compete against his old adversary, veteran politician Mahathir Mohamad. Because the result is considered to be the most unpredictable in the country’s history, let’s see if the chart of Malaysia’s currency can help shed some light. The salient feature of this monthly chart is the drop from nearly 4.47 Malaysian ringgit to the US dollar both in 2015-16 and 2017-18. Hovering at Fibonacci 38 per cent retracement support, almost oversold, and with an extreme reading of the MACD, it is likely to try to base slowly around the 3.85-ringgit area.
Nicole Elliott is a technical analyst