The loss of 4.3110 could put USD/MYR en route to a potential visit to the 4.3000 region in the short-term horizon, notes Markets Strategist at UOB Group Quek Ser Leang.

Key Quotes

“We highlighted last Monday (09 Jan, spot at 4.3730) that ‘downward momentum is beginning to build’ and we held the view that USD/MYR ‘is likely to trade with a downward bias toward last month’s low of 4.3570, possibly 4.3400’. The anticipated weakness exceeded our expectations as USD/MYR dropped sharply to a low of 4.3250.”

“Downward momentum has improved considerably and we continue to expect USD/MYR to weaken. There is a strong support at 4.3110, a break of this level could trigger a rapid drop to 4.3000, as low as 4.2750. Resistance is at 4.3300, but only a breach of 4.3500 would indicate the current weakness has stabilized.”