OCBC strategists Sim Moh Siong and Christopher Wong report that USD/MYR is consolidating close to latest highs after an early-week run-up, supported by broader USD energy and soggy danger sentiment. Geopolitical headlines round Iran and power markets are seen as key drivers. They warn that additional escalation might set off risk-off flows, weakening high-beta Asian FX together with MYR, with clear resistance and assist ranges outlined.
Excessive-beta MYR susceptible to risk-off flows
“USD/MYR. Consolidation close to latest highs. USD/MYR consolidated this week after the run-up in early week. Mixture of USD energy, soggy danger sentiments weighed on Asian FX, together with MYR.”
“For now, geopolitical headlines dominate and developments stay fluid. If tensions proceed to escalate and set off broad risk-off situations, resulting in additional fairness selloffs, EM outflows and rush for USD liquidity, then high-beta Asian FX, together with MYR, can weaken briefly no matter oil/commodity dynamics.”
“USD/MYR final seen at 3.9450 ranges. Bullish momentum on each day chart intact whereas rise in RSI moderated. 2-way trades possible.”
“Resistance at 3.95, 3.9630 (23.6% fibo retracement of Oct excessive to Feb low) and three.9865 (50 DMA). Help at 3.9180 (21 DMA), 3.88 ranges.”
(This text was created with the assistance of an Synthetic Intelligence software and reviewed by an editor.)
