What technical indicator suggests the ringgit might strengthen further?

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The ringgit is technically positioned for further appreciation against the US dollar.

The ringgit opened firmer against the US dollar, trading at 4.0705/0805 compared to the previous day's close of 4.0780/0830. This movement follows weaker-than-expected US jobs data for June, which has influenced expectations regarding the Federal Reserve's interest rate policy.
Ringgit in Oversold Territory

From a technical analysis standpoint, the ringgit's current position against the US dollar is considered oversold. This technical condition suggests a potential for the local currency to strengthen further in the near term.
Impact of US Nonfarm Payrolls Data

The US nonfarm payrolls report for June indicated an increase of only 57,000 jobs. This figure fell significantly short of the consensus forecast of 114,000. Furthermore, revisions to the April and May payroll figures were also downward, signalling a potentially less robust labour market.
Expected Trading Range for the Ringgit

Given these factors, analysts anticipate the US dollar to ringgit exchange rate to trade within a range of RM4.06 to RM4.07. Yesterday, the ringgit had already closed 0.33 per cent higher against the US dollar, settling at RM4.0805.

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What technical indicator suggests the ringgit might strengthen further?

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