USD/MYR faces prospects for extra upside in the near term. according to FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“We highlighted last Monday (01 Aug, spot at 4.4480) that USD/MYR ‘could drift lower but is unlikely to threaten the rising trend-line support at 4.4300’. USD/MYR dropped briefly to 4.4450 on Friday before rebounding. While USD/MYR extended its advance during Asian hours today, upward momentum is not strong.”

“That said, there is scope for USD/MYR to edge higher but for this week, a break of 4.4700 is unlikely (there is another resistance at 4.4650). Support is at 4.4450 followed by the rising trend-line support at 4.4350. The rising trendline support is unlikely to come under threat this week.”