USD/MYR: Weakness looks limited around 4.1370 – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research notes that selling pressure in USD/MYR should appear limited around the 4.1370 level.

Key Quotes

“Last Monday (11 Oct, spot at 4.1670), we highlighted that ‘there is little scope for USD/MYR to break the major support at 4.1400’. We added, USD/MYR ‘is more likely to consolidate and trade between 4.1480 and 4.1760’. Our view was not wrong even though USD/MYR subsequently traded within a narrower range than expected (4.1480/4.1695). The underlying tone has weakened somewhat and for this week, a breach of the rising trend-line support (level has moved higher to 4.1420 from 4.1400) would not be surprising.”

“As downward pressure is not strong for now, any weakness is likely limited to a test of 4.1370. On the upside, a breach of 4.1630 would indicate that the current mild downward pressure has eased.”