In the view of FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research, USD/MYR could slip back to the 4.3400 region.

Key Quotes

“When USD/MYR was trading at 4.3860 last Monday (09 May), we highlighted that ‘upward momentum has waned further and USD/MYR is unlikely to strengthen’ and we expected USD/MYR to ‘trade sideways between 4.3670 and 4.4010’. USD/MYR subsequently traded between 4.3770 and 4.3990.”

“USD/MYR opened on a week note today and at the time of writing, it has edged slightly below the 4.3670 support. The price actions suggest that USD/MYR is likely to trade with a downward bias this week. Support is at 4.3550 followed by 4.3400. The major support at 4.3330 is not expected to come into the picture. On the upside, a break of 4.3870 (minor resistance is at 4.3800) would indicate that the current downward pressure has eased.”