In the view of Markets Strategist Quek Ser Leang at UOB Group, further upside in USD/MYR could revisit the 4.7000 key barrier.

Key Quotes

Last Monday (19 Jun, spot at 4.6170), we indicated that “while upward momentum has not increased much, we see chance of USD/MYR testing 4.6360 this week before the risk of a more sustained pullback increases.” We did not expect the surge in momentum as USD/MYR blew past 4.6360 and surged to a high of 4.6750.

USD/MYR continues to rise in Asian trade today (26 Jun), and the risk for this week remains on the upside. Resistance levels are 4.7000 and 4.7470. The latter level, which is last year’s high is likely out of reach this week. In order to keep the momentum going, USD/MYR must stay above 4.6420 (next support is at 4.6100).