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But they were not successful, as the absence of strong follow-through buying momentum prompted the bulls to abandon the idea.
Thereafter, more investors were into profit-taking selling mood and as crude oil prices continued to mend, persistent liquidation pressure dominated the floor, which witnessed the Malaysian currency strengthen to 4.0730 against the greenback on Monday morning.
Apart from the recent depreciation of the US dollar, the more important point we would like to highlight was the breakdown from the lowest 200-day simple moving average line (SMA) that happened late last week.
The apparent negative breakdown looks real and significant, because this was the first time the US dollar had fallen below the crucial line since September 2014.
Going forward, the ringgit is expected to firm against the US dollar, with the falling 14-day SMA and 21-day SMA pressuring the latter currency while the black gold extend recovery after a prolonged rout.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were fast reaching the oversold area but they show no sign of reversing just yet.
Mirroring the down momentum, the 14-day relative strength index fell from a reading of 58 on Feb 26 to the 24 points level this morning.
In addition, the daily moving average convergence/divergence histogram expanded negatively against the daily signal line after triggering a sell last Friday.
Technically, indicators are painting a growing oversold condition, suggesting a relief rebound for the US dollar may be around the corner.
However, the upside potential is likely to be capped, as any recovery may draw investors to sell into strength, with the recent decisive breakdown suggesting the rally in the US dollar against the ringgit has ended.
This may mean range-bound trading at best for the US dollar, unless it could reclaim the posture above the 200-day SMA.
Initial support for the greenback is seen at the 4.05 mark, followed closely by the 4.025 level.
To the upside, stiff resistance is envisaged at the 4.1397 level.
KUALA LUMPUR: After peaking out at a multi-year high of 4.4770 against the ringgit on Sept 29, 2015, the US dollar bulls made two attempts to resume the rally, once in November and another round in January this year.
But they were not successful, as the absence of strong follow-through buying momentum prompted the bulls to abandon the idea.
Thereafter, more investors were into profit-taking selling mood and as crude oil prices continued to mend, persistent liquidation pressure dominated the floor, which witnessed the Malaysian currency strengthen to 4.0730 against the greenback on Monday morning.
Apart from the recent depreciation of the US dollar, the more important point we would like to highlight was the breakdown from the lowest 200-day simple moving average line (SMA) that happened late last week.
The apparent negative breakdown looks real and significant, because this was the first time the US dollar had fallen below the crucial line since September 2014.
Going forward, the ringgit is expected to firm against the US dollar, with the falling 14-day SMA and 21-day SMA pressuring the latter currency while the black gold extend recovery after a prolonged rout.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were fast reaching the oversold area but they show no sign of reversing just yet.
Mirroring the down momentum, the 14-day relative strength index fell from a reading of 58 on Feb 26 to the 24 points level this morning.
In addition, the daily moving average convergence/divergence histogram expanded negatively against the daily signal line after triggering a sell last Friday.
Technically, indicators are painting a growing oversold condition, suggesting a relief rebound for the US dollar may be around the corner.
However, the upside potential is likely to be capped, as any recovery may draw investors to sell into strength, with the recent decisive breakdown suggesting the rally in the US dollar against the ringgit has ended.
This may mean range-bound trading at best for the US dollar, unless it could reclaim the posture above the 200-day SMA.
Initial support for the greenback is seen at the 4.05 mark, followed closely by the 4.025 level.
To the upside, stiff resistance is envisaged at the 4.1397 level.
KUALA LUMPUR: After peaking out at a multi-year high of 4.4770 against the ringgit on Sept 29, 2015, the US dollar bulls made two attempts to resume the rally, once in November and another round in January this year.
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