USD/MYR faces a probable drop to 4.0950 – UOB

The Malaysian ringgit could appreciate to the 4.0950 level vs. the dollar in the near term, noted Quek Ser Leang from Global Economics & Markets Research at UOB Group.

Key Quotes

“Last Friday (11 Jun), USD/MYR cracked the rising trend-line support dropped quickly to 4.1050. While the risk has shifted to the downside, it is too early to expect a sustained decline.”

“For this week, there is room for USD/MYR to test 4.0950 but the next major support at 4.0860 is not expected to come into the picture. Resistance is at 4.1190 but only a break of 4.1240 would indicate that the current downward pressure has eased.”