USD/MYR is likely to trade within the 4.1370-4.1600 range for the time being, noted Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“Last Monday (25 Oct, spot at 4.1515), we highlighted that ‘the underlying tone has weakened somewhat USD/MYR could breach the rising trend-line support at 4.1420’. We added, ‘as downward pressure is not strong for now, any weakness is likely limited to a test of 4.1370’. Our view was not wrong as USD/MYR dipped slightly below the rising trend-line on Friday (low of 4.1400). Despite the breach of the trend-line, downward pressure has barely increased and USD/MYR is unlikely to weaken much further.”

“For this week, USD/MYR is more likely to consolidate and trade between 4.1370 and 4.1600. Looking ahead, in terms of several weeks, as long as USD/MYR does move above the 55-day exponential moving average (currently at 4.1680), there is chance for USD/MYR to edge lower towards Sep’s low at 4.1280.”