USD/MYR: Scope for a drop to 4.5100 – UOB

Pablo Piovano FXStreet

USD/MYR risks a probable move to the 4.5100 region in the near term, suggests Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

The selloff that sent USD/MYR plunging by 3.06% last week (Friday close of 4.5230) came as a surprise (we were expecting USD/MYR to consolidate between 4.6360 and 4.6880). The outsized decline appears to be overextended, and USD/MYR is unlikely to weaken much further. It is worth noting that the 3.06% decline is the largest 1-week drop since March 2020.

This week, there is a chance for USD/MYR to drop to 4.5100. At this stage, the likelihood of USD/MYR breaking clearly below the major support at 4.4880 is not high. Resistance is at 4.5700, followed by 4.5870.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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