USD/MYR: Room for a drop to 4.2170 – UOB

The downside momemtum in USD/MYR could extend to the 4.2170 level, suggested Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“We highlighted last Monday (17 Aug, spot at 4.2395) that ‘bias for USD/MYR is tilted to the upside towards 4.2450; prospect for a sustained rise above this level not high’.”

“Our expectations did not materialize as aside from a brief pop to 4.2430, USD/MYR traded in a relatively quiet manner. USD/MYR opened on a soft note today and shorter-term downward momentum is beginning to build.”

“A break of the trendline support (currently at 4.2170) would not be surprising but for this week, the next support at 4.2090 is likely out of reach.”