USD/MYR - At best Rm 3.85 to 1 USD

Looking at the daily chart, I would say, at best, the Malaysian ringgit can strengthen to around 3.85 to complete the wave 2 before weaken to above 4.50 to complete the wave 3 of B.

If my wave count for USD/MYR is correct, you can guess who is going to win the coming GE14.

Before the 1997 Asian Currency Crisis, for many years USD/MYR was able to stay around Rm 2.6 to 1 USD. I expect another 'shakeout' to complete the wave 3 of B in 2018 before the ringgit can slowly strengthen to Rm 2.6 to 1 USD again after a few years.

Based on the USD/MYR wave count, KLCI is more likely to form the wave 3 of B in tandem with the USD/MYR chart.

The 2nd scenario of major wave 5 formation for KLCI that I mentioned yesterday is less likely.

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