According to Markets Strategist Quek Ser Leang at UOB Group, USD/MYR faces a potential move to the 4.5600 region in the short-term horizon.

Key Quotes

“While we expected USD/MYR to strengthen last week, we held the view that it ‘might not be able to break above the March high of 4.5290’. The anticipated USD/MYR strength exceeded our expectations by a wide margin as USD/MYR lifted off and soared to a 6month high of 4.5510 before ending the week at 4.5360 (+1.32%).”

“The sharp and swift rise appears to be overdone but USD/MYR could test 4.5600 first before the risk of a reversal increases. The next resistance at 4.5750 is unlikely to come into view. Support is at 4.5230, followed by 4.5000.”