When the back of the Bear rm/usd was beaten in July 2004 , new Bull was born in usd/rm .That was the day, Malaysia had removed its Pegging policy to float its currency. The ringgit Malaysia had ever relentlessly moving up with higher high and higher lows. In simple English ...Up and up .
Their "crowd" are saying that usd /rm will be trading at below 3.00 before the year end in 2008. Now its trading at 3.1915. Are they saying the truth? Now is your job to do your homework.
The Chart is saying "Yes" as the ruler is still up . The price had not yet break its up trend line, though now ( for mid term investor put on your "Hawk Eye ") is becoming weaker. Reason rm are: rm is on OB condition and its TA internals are at weak and pointing to hook down. But for long term there is nothing to worry about..... just ride on the trend. If next week, the ruler break down and the internals confirm it then for mid term investor just beware.
As long as usd index is in bear market our rm will be in bull market.It's the usd index which is bear market, that make rm a good currency now. Nothing to brag about except now though the oil had surpassed usd 100 per barrel but Petronas profit will not be quadruple as before the peg . Because now we get lesser ringgit for every 1 usd. If assuming our pegging policy is in place Petronas Profit will be more than hexagonal then the funding of Penang second bridge will be not be a problem.
As for our student study in US, they will be sad when they came from US they will get lesser rm for every usd dollar they change at the money changer.
Please click on the chart to see the chart more clearly. Notes written was simple as possible for me and the newbies.
Your watchman.... trying to get his clock repaired.
