USD/MYR (4.1555) - Evening Doji Star

USD/MYR exchange rate is one of the data that I am monitoring. At the end of November I noticed the formation of a 'Doji' for the month of November. At the beginning of December when USD/MYR  exchange started to move side way I was hoping that the December candlestick can complete the formation of a bearish 'Evening Doji Star' reversal pattern. (Bearish for USD means bullish for the Malaysian Ringgit).

Based on the latest USD/MYR monthly chart up to 27 December, I can see that an "Evening Doji Star' is taking shape. There are two more trading days left for December, the 28th and 31st December, but I don't expect the shape to change much.

Malaysian Ringgit has a chance here to go below 4.0 in the next few month. This should be very good for the Malaysian stock market.

From the monthly candlestick chart for USD/MYR since 1994, the rebound since early 2018 is the wave 2 of C. The next down should be the wave 3 of C, that should bring USD/MYR to below 3.500 from its current level of 4.155.

Another possibility is that the wave 2 of C is only halfway through. It is going for a 'Head & Shoulder' reversal pattern.

For the longer term, instead of a simple A-B-C major wave (2), it can also go for a complex A-B-C-X-A-B-C wave (2).

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