USD/MYR faces prospects for extra gains, although a convincing breakout of 4.7500 appears not favoured for the time being, notes Markets Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“We expected USD/MYR to strengthen last week but we were of the view that ‘4.7500 is unlikely to come into view’.” Our view was wrong as USD/MYR rose to a high of 4.7370 before closing at 4.7360. Not surprisingly, conditions are overbought.”

“However, as long as 4.7000 is not breached (minor support is at 4.7150), USD/MYR could rise above 4.7500 this week. In view of the overbought conditions, USD/MYR is unlikely to be able to maintain a foothold above this level. Looking ahead, the next resistance above 4.7500 is at 4.7650”.