USD/MYR faces a deeper pullback below 4.3870 – UOB

USD/MYR could see its losses accelerate on a breach of 4.3870, according to Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“We highlighted last Monday (13 Jun, spot at 4.4140) that ‘risk for USD/MYR is on the upside even though the 2020 high of 4.4410 is unlikely to come into the picture for now’. While USD/MYR advance as expected, it pulled back sharply after touching a high of 4.4240.”

“Upward momentum is weakening and a break of 4.3870 could lead to a deeper pullback to 4.3800, possibly 4.3670. For this week, the 55-day exponential moving average support at 4.3515 is not expected to come under threat. Resistance is at 4.4150 followed by 4.4240.”