USD/MYR: Scope for a move below 4.1600 – UOB

USD/MYR now risks a probable breakdown of the 4.1600 level, suggested Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“Last Monday (04 Oct, spot at 4.1700), we highlighted that USD/MYR ‘is under mild downward pressure and could drift lower’. We were of the view that ‘any weakness is unlikely to threaten the support at 4.1550’. Our expectations for USD/MYR to drift lower did not materialize as it traded within a range of 4.1680/4.1850 last week.”

“USD/MYR opened sharply lower earlier today and downward pressure has increased (note that daily MACD is turning negative). For this week, there is room for USD to break 4.1600 but the next support at 4.1530 could be out of reach. Resistance is at 4.1760 followed by 4.1830.”