Malaysia raises key rate for the first time since 2014. Coupled with a hawkish tone from Bank Negara Malaysia, we are likely to see the Malaysia Ringgit continue strengthening against the Singapore Dollar.
Price has broken the inner trend line structure at 3.0759 late 2017. This opens up more downside potential for SGD/MYR.
However, we are seeing a 5-wave structure completed at 2.9936, as the larger degree wave 3. This give us the expectation that we might see a retracement towards 3.0166 - 3.0441 before another move lower towards 2.9384.
For Singaporeans, this may be a good time to cross the border and stock up during the 1H of 2018. For investors, it would also be wise to look into the Malaysia stock market, riding not only the capital gains from the stock market but from the foreign exchange rate too!
For Malaysian, well.... it will still be relative expensive to shop in SG anyway! LOL