USD/MYR could retest 4.4550 near term – UOB

According to UOB Group’s Market Strategist Quek Ser Leang, further upside could motivate USD/MYR to revisit the 4.4550 level in the near term.

Key Quotes

“Last Monday (13 Feb, spot at 4.3510), we held a bullish USD/MYR view. We indicated that ‘the risk for USD/MYR is still on the upside’. We added, ‘a break of the strong resistance at 4.3660 could potentially trigger a rapid rise to 4.4000’. Our bullish view was correct even though the anticipated ‘rapid rise’ exceeded our expectations as USD/MYR surged to a high of 4.4320 before closing higher by a whopping 2.23% (Friday’s close of 4.4300), its largest 1-week advance since Mar 2020.”

“While deeply overbought, the advance has room to extend to 4.4550. The next major resistance level at 4.5000 is unlikely to be tested this week. Support is at 4.4000, but only a breach of 4.3750 would indicate that the current strong upward pressure has eased.”