USD/MYR: A sustained move above 4.24 is not favoured – UOB

USD/MYR faces a potential break of 4.24, although further strength from there looks out of favour, according to Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“USD/MYR rose to a high of 4.2400 last week before closing on a firm note at 4.2250. Shorter-term conditions are overbought and while USD/MYR could advance above 4.2400 this week, a sustained rise above this strong resistance (top of rising channel) is unlikely.”

“The next resistance is near 4.2700, the 61.8% retracement of the drop from Mar 2020 to Jan this year. Support is at 4.2130 but only a breach of 4.1850 would indicate that the current upward pressure has eased.”