USD/MYR: Risks remain tilted to the upside – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research notes USD/MYR could still advance further.

Key Quotes

“In our weekly update from last Tuesday (12 Jul, spot at 4.4350), we highlighted that ‘upward momentum has improved considerably and USD/MYR is likely to advance to the 2020 high at 4.4410’. We added, ‘the next major resistance at 4.4500 is likely out of reach for now’. Our view was not wrong as USD/MYR soared to a high of 4.4480 on Friday (15 Jul). Upward momentum remains strong and the risk for this week is still on the upside.”

“However, in view of the overbought shorter-term conditions, USD/MYR may not be able to maintain a foothold above 4.4500. The next resistance at 4.4590 is unlikely to come into the picture. The major support at 4.4120 is unlikely to come under threat for this week. On a shorter-term note, 4.4250 is already quite a strong support level.”