After USD/MYR dropped to a low of 4.5120 and rebounded, we highlighted last Monday (17 Jul, spot at 4.5560) that “there is a chance for USD/MYR to drop further to 4.5100. We also highlighted that “The likelihood of USD/MYR breaking clearly below the major support at 4.4880 is not high.” Our view did not materialize as USD/MYR dipped to 4.5200 and then rose to 4.5600. The price actions are likely part of a consolidation phase.

This week, USD/MYR is likely to trade in a range between 4.5230 and 4.6000.