USD/MYR should keep the range bound theme unchanged between 4.1480 and 4.1760 so far, suggested Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“Last Monday (11 Oct, spot at 4.1670), we highlighted that ‘downward pressure has increased’. We added, ‘there is room for USD/MYR to break 4.1600 but the next support at 4.1530 could be out of reach’. While our view for a weaker USD/MYR was not wrong, the subsequent weakness exceeded our expectations as USD/MYR plummeted to 4.1450 last Thursday (14 Oct).”

“The rebound from the low amid oversold shorter-term conditions suggest that there is little scope for USD/MYR to break the next major support at 4.1400 (rising trend-line that started in April). For this week, USD/MYR is more likely to consolidate and trade between 4.1480 and 4.1760.”