Further upside remains in the pipeline for USD/MYR, suggests FX Strategist at UOB Group’s Global Economics & Markets Research Quek Ser Leang.

Key Quotes

“We highlighted last Monday (26 Sep, spot at 4.5960) that USD ‘a break of 4.6000 would not be surprising’ and we indicated that ‘The next resistance is at 4.6200, followed by 4.6500’. USD/MYR subsequently soared to a high of 4.6450. While conditions are overbought, there is room for the advance in USD/MYR to extend to 4.6610 before a pullback is likely.”

“On the downside, a breach of the rising trend-line support at 4.6120 (minor support is at 4.6280) would indicate the current upward pressure has subsided.”