USD/MYR: A breakout of 4.2000 is not ruled out – UOB

The Malaysian ringgit could depreciate to the 4.20 level vs. the dollar, noted Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“Our expectations for USD/MYR to ‘continue to trade sideways’ last week was incorrect as it soared to a high of 4.1905 on Friday (09 Jul). Upward momentum is strong and USD/MYR is likely to strengthen further.”

“A break of the major resistance at 4.2000 is not ruled out but it is left to be seen if it can maintain a foothold above this level.”

“For this week, the next resistance at 4.2220 is unlikely to come under threat. Support is at 4.1750 but only an unlikely breach of 4.1600 would indicate that the current upward pressure has eased.”