USD/MYR risks further pullbacks – UOB

Markets Strategist Quek Ser Leang at UOB Group noted USD/MYR could brewak below the 4.4500 level in the near term.

Key Quotes

“We highlighted last Monday (13 Mar, spot at 4.4810) that ‘4.5290 is likely a short-term top’ and we expected USD/MYR to ‘edge lower but any decline is viewed as a lower trading range of 4.4500/4.5150’. Our view was not wrong even though USD/MYR traded in a narrower range of 4.4650/4.5130 before closing the week at 4.4830 (-0.38%). Downward momentum has improved, albeit not much.”

“This week, USD/MYR could edge lower to 4.4500. The next support at 4.4300 is unlikely to come under challenge. On the upside, a breach of 4.5100 (minor resistance is at 4.4850) would indicate that the current mild downward pressure has eased.”