Further upside could encourage USD/MYR to retest the 4.2360 level, noted Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“We highlighted last Monday that USD/MYR ‘is likely to trade sideways for this week, expected to between 4.1800 and 4.2100’. We added, ‘looking ahead, if USD/MYR closes above 4.2100, it would increase the odds for a sustained rise above 4.2150’.”

“We did not expect the subsequent spike in volatility as USD/MYR cracked 4.2100, surged to 4.2360 before pulling back sharply. Despite the sharp pullback, there is scope for USD/MYR to retest the 4.2360 level. For this week, a sustained rise above this level is unlikely. Support is at 4.2010 followed by 4.1940.”