Further gains could lift USD/MYR to revisit the 4.3250 level in the short-term horizon, notes Quek Ser Leang, Markets Strategist at UOB Group.

Key Quotes

“We highlighted last Monday (30 Jan, spot at 4.2380) that ‘further USD/MYR weakness is not ruled out but in view of the deeply oversold conditions, any decline is unlikely to break the support at 4.2000’. We added, ‘4.2200 is likely to offer strong support already’. USD/MYR dropped to a low of 4.2200 on Thursday before ending the week at 4.2560.”

“USD/MYR soared upon opening today and the rapid increase in momentum is likely to lead to further USD/MYR strength towards 4.3250. The next resistance at 4.3480 is likely out of reach this week. In order to keep the momentum going, USD/MYR should stay above 4.2500 . Minor support is at 4.2800.”