Further upside could prompt USD/MYR to meet the next resistance of note at 4.5550, note FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“While we expected USD/MYR to strengthen last week, we were of the view it ‘could advance further but the resistance at 4.5100 is unlikely to come into view for now’. We underestimated the upward momentum as USD/MYR soared to 4.5330 last Friday before extending its advance today. Upward momentum is strong and USD/MYR is likely to strengthen further.”

“That said, deeply overbought short-term conditions could ‘limit’ gains to 4.5550. Support is at 4.5300 but only a breach of 4.5150 would indicate the current strong upward pressure has eased.”