Further upside could prompt USD/MYR to revisit the 4.5000 region in the short term, suggests Market Strategist at UOB Group Quek Ser Leang.

Key Quotes

“Last Monday (20 Feb, spot at 4.4300), we highlighted that ‘the overbought advance has room to extend to 4.4550’. We added, ‘the next major resistance level at 4.5000 is unlikely to be tested this week. Our expectations did not materialize and USD/MYR traded between 4.4150 and 4.4420 before closing little changed at 4.4330 on Friday (+0.07%).”

“USD/MYR soared upon opening today and upward momentum is building rapidly. This week, there is room for USD to test the major resistance at 4.5000. Support is at 4.4310, a break of 4.4200 would indicate that the upside risk has faded.”