In the view of Markets Strategist Quek Ser Leang at UOB Group, USD/MYR could have printed a near-term top near 4.5300.

Key Quotes

“We highlighted last Monday (06 Mar, spot at 4.4670) that ‘overbought conditions combined with waning upward momentum suggest USD/MYR is unlikely to advance further’ and we expected USD/MYR to consolidate between 4.4500 and 4.4900. Our view of consolidation was incorrect as USD/MYR rose to 4.5290 before closing at 4.5180 on Friday (+1.01%).”

“USD/MYR fell sharply upon opening today, and this combined with rapidly waning upward momentum suggests 4.5290 is a short-term top. However, it is too early to expect a major reversal. This week, USD/MYR is likely to edge lower but any decline is viewed a lower trading range of 4.4500/4.5150.”