USD/MYR: The rally could take a breather on a drop below 4.6480 – UOB

The upside momentum in USDS/MYR remains well and sound and the pair faces strong resistance at the 4.7500 region, according to Markets Strategist Quek Ser Leang at UOB Group’s Global Economics and Markets Research.

Key Quotes

“USD/MYR continues to soar, closing higher for seven straight weeks (4.7000, +1.12%). While deeply overbought, the strong rally is not showing any signs of weakness just yet. In other words, USD/MYR could continue to rise this week.”

“However, the next resistance at 4.7500 is unlikely to come into view for now (there is another resistance at 4.7350). Support is at 4.6850 but only a breach of 4.6480 would indicate that the rally in USD/MYR is ready to take a breather.”