Buy USD/MYR due to Hammer Candlestick?

Check out USD/MYR on the daily chart.

The Malaysian ringgit lookin’ weak against the U.S. dollar.

Price retraced and has now formed a hammer.

Price also fell below its 20 SMA but managed to closed back above it.

With price above all three simple moving averages (20, 50, and 200), will price now resume its uptrend?

What do y’all think?

Looks like the hammer held.

The 20 SMA (orange line) is holding as dynamic support for now.

Malaysia’s economy not looking good.

Bank Negara Malaysia (BNM) just warned that a recession seems imminent with Malaysia’s GDP possibly shrinking to a low of -2% in 2020 due to the economic impact of the Covid-19 pandemic.

The central bank’s estimate is even bleaker than the World Bank’s, which recently slashed its growth projection for Malaysia to -0.1% in 2020 from 4.5% previously.

Bullish trade still lookin’ good…