Any insights on where the Malaysian Ringgit (MYR) will be heading within the next 12 months? Regards.

David Fuller's view

For perspective, here is the MYR against the USD (monthly, weekly & daily).

The monthly chart shows that MYR is now in sight of its trough from the last Asian crisis in 1998.  The weekly chart shows that MYR is once again very overextended relative to its 200-day (40-week) MA.  The daily chart’s short-term Stochastic is oversold, not surprisingly, but does not yet show any of the upward dynamics which could indicate the beginning of a steadier phase.  

We know that the weakness of commodities and perhaps some political tensions are the main factors behind this decline in MYR.  We also know from the charts that this now looks like a climactic stage of the move.  Therefore, my guess is that MYR could still move a little lower.  Moreover, it is unlikely to see more than temporary technical rallies until the Continuous Commodity Index bottoms.  A year from now there is a chance that both CCI and MYR, if not higher, will at least show some evidence of bottoming activity.