USD/MYR: Next target comes at 4.40 – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted USD/MYR faces the next significant up barrier at 4.40.

Key Quotes

“We highlighted last Monday (18 Apr, spot at 4.2460) that ‘upward momentum is beginning to build’ and we held the view that the ‘risk for USD/MYR is on the upside towards 4.2600, possibly 4.2650’. While our view for USD/MYR to strengthen was correct, we did not anticipate the manner by which it lifted off and rocketed to a high of 4.3240 last Friday. Note that USD/MYR gained a whopping 2.13% last week, its largest 1-week advance in more than 2 years.”

“USD/MYR extended its rally upon opening today and the risk for this week is still clearly on the upside. With all the resistance levels on the daily chart been taken out, the resistance level to focus on from here is at the weekly declining trend-line connecting the highs of 2017 and 2020 (level is currently near 4.4000). That said, it is left to be seen if USD/MYR has enough momentum to reach this level within this week. In order to maintain the current strong momentum, USD/MYR should ideally not move below 4.2800.”