Extra upside could lift USD/MYR to the 4.62 level in the near term, according to FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research.
“While we expected USD/MYR to strengthen last week, we were of the view that ‘overbought short-term conditions could ‘limit’ gains to 4.5550’. We underestimated the upward momentum as USD/MYR easily took out 4.5550.”
“USD/MYR extended its sharp rise today and in view of the rapid upward acceleration, a break of 4.6000 would not be surprising. The next resistance is at 4.6200, followed by 4.6500. On the downside, the rising trend-line support at 4.5700 is likely strong enough to hold any pullback.”