Further downside pressure could force USD/MYR to slip back to the 4.4200 region in the near term, notes Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

“We highlighted last Tuesday (02 May, spot at 4.4590) that USD/MYR ‘could strengthen further but a sustained rise above 4.4850 appears unlikely this week’. However, instead of strengthening, USD/MYR traded sideways until last Friday when it dropped to a low of 4.4330. Downward momentum is improving, albeit not much.”

“This week, USD/MYR is likely to trade with a downward bias towards 4.4200. The next support at 4.0000 is unlikely to come under threat. Resistance is at 4.4450, followed by 4.4600.”