USD/MYR: Major support comes in at 4.1200 – UOB

USD/MYR risks further decline, with the next down barrier of significance emerging at 4.1200, comments Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“Last Monday (30 Aug, spot at 4.1700), we highlighted that ‘a break of the major support at 4.1660 would not be surprising’. We added, ‘the next support at 4.1450 may not come into the picture’.”

“While our view for USD/MYR to weaken was not wrong, we underestimated the pace of its decline as it dropped sharply to 4.1410 last Wednesday (01 Sep). Conditions remain oversold but the current weakness is not showing signs of stabilization just yet.”

“For this week, USD/MYR could edge lower towards 4.1350, the next major support at 4.1200 is likely out of reach. On the upside, a breach of 4.1660 (minor resistance is at 4.1540) would indicate that the current weakness has stabilized.”