Extra gains in USD/MYR are expected to meet decent resistance around the 4.5790 region for the time being, notes Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

After USD/MYR dropped to a low of 4.5150 and rebounded, we highlighted last Monday (31 Jul, spot at 4.5420) that “Despite dropping to 4.5150, there is no clear increase in momentum”, and we expected USD/MYR to trade in a range between 4.5250 and 4.5790. Our expectations were incorrect as USD/MYR fell to 4.4950, then rebounded strongly to end the week unchanged at 4.5530.

The rebound has gained some momentum, and this week, there is room for USD/MYR to rebound further. However, any advance is unlikely to break clearly above 4.5790 (minor resistance is at 4.5600). On the downside, if USD/MYR breaks below 4.5120 (minor support is at 4.5250), it would indicate that the buildup in momentum has eased