USD/MYR: Scope for a test of 4.4000 – UOB

In opinion of Quek Ser Leang at UOB Group’s Global Economics & Markets Research, further upside could encourage USD/MYR to visit 4.4000.

Key Quotes

“Last Monday (09 May, spot at 4.3800), we held the view that ‘strong momentum suggests USD/MYR could break 4.4000’. Our expectations did not materialize as USD/MYR rose to a high of 4.3965 on Friday (13 May).”

“While there is still chance for USD/MYR to move above 4.4000, rapidly waning upward momentum (note that daily MACD is turning negative) suggests that a sustained rise above this major resistance is highly unlikely. On the downside, a breach of 4.3670 could lead to a pullback but 4.3330 is likely out of reach for now.”