Since this year April, MYR enter bearish which slipped from 0.2590 to lowest 0.2403. Until recently, MYR downward trend was slowing down and showing more support. As the result, it formed a flag movement currently. It seems like MYR is close to a price floor. However, it is believed that such fluctuation will not sustain long and deprecate again soon.
Base on fundamental analysis, under the pressure of US increase interest rate plan, it is very likely that more capital flow into US market and lead MYR further deprecate. Moreover, Malaysia was troubled in 241B USD debt problem. Although president Mahathir Mohamad announced that, in order to solve the debt concern, a new tax policy will be published soon, there is no practical measure yet. Meanwhile the 2018 Q2 GDP growth rate of Malaysia is also slowing down from 5.4% to 4.5%. Therefore, Malaysia debt default risk cannot be ignored.
On technical view, currently, MYR is showing support on above 0.2400. If MYR drop through it, it is possible that the next support will at last year October low level for around 0.2360.