encik wan - IT Developer on Global Investment and Technical Analysis

USD SGD 1980-2010
From the chart of USDSGD between 1980 and 2010, it is unknown the next long-term bottom of USDSGD.

USD MYR 1996-2010
However if SGD is to follow MYR against USD, then USDSGD will lose another 20% ((3.15-2.5)/3.15) to 1.12 (no parity yet)

SGD MYR 1996-2010

SGD MYR 2004-2010
Then how about SGDMYR? In the short term, SGDMYR trend is bearish as it breaches strong support 2.325 in such a short period. For longer period, the trend of SGDMYR is uncertain. It could reach 2.1 for SGDMYR bears or 2.8 (2.45 + (2.45 - 2.1)) for SGDMYR bulls. For SGDMYR bulls to gain more confidence, SGDMYR must reclaim 2.325 within 2010.

Based on USDSGD long term chart, USDSGD may reach 1.60. However from short term USDSGD chart, the price target of 1.60 is difficult due to ascending wedge pattern. From chart of USDSGD vs STI, USDSGD has inverse relationship with STI due to export-dependent Singapore economy. If you are bearish on Singapore economy, then the USDSGD target of 1.60 is possible.

USDSGD long term chart

USDSGD short term chart

USDSGD vs STI

USDMYR long term chart

USDMYR short term chart

SGDMYR short term chart
While USDMYR is in the similar situation of USDSGD, how about SGDMYR? In the previous post, it was forecasted that SGDMYR may reach 2.45-2.48. Due to weakened Singapore economy, the target of 2.45-2.48 for SGDMYR has to be delayed. In the short term, resistance for SGDMYR is 2.425

23/4/2011 2011 analysis of MYR, SGD and USD

SGDMYR - short term forex chart

Any idea from the SGDMYR short term forex chart?

No idea?

How about SGDMYR long term forex chart?
SGDMYR - long term forex chart

1930’s The Great Depression food queue Photo by The Market Oracle

Zimbabwe currency 2008 Photo by Ivar Hagendoorn

All right, from the charts above, SGDMYR currency traders are forecasting something bad is going to happen similar to 1997 Asian Financial Crisis (See spike in SGDMYR exchange rate).

Are the currency traders wrong? May be. Anyway be prepared. Luck favor the prepared.

23/4/2011 2011 analysis of MYR, SGD and USD