The continuation of the upside in USD/MYR is not ruled out, although a test of the 4.51 hurdle remains elusive for the time being, suggests Quek Ser Leang, FX Strategist at UOB Group’s Global Economics & Markets Research.

Key Quotes

“While we expected USD/MYR to strengthen last week, we were of the view that ‘the major resistance at 4.4980 is likely out of reach’. However, USD/MYR took out 4.4980 and rose to 4.5020. Upward momentum has improved, albeit not by much.”

“For this week, USD/MYR could advance further but the resistance at 4.5100 is unlikely to come into view for now. Support is at 4.4930 but only a break of 4.4900 would indicate that the current upward pressure has eased.”