This is just for the record.
Fig 1 SGD EUR Weekly Chart
After its spectacular plunge since December 2014, the deterioration of the SGD EUR seems to be losing steam. In fact it is now a potential wedge and if breaking out now will lead to a retracement to SGD1.55. This I remember is very similar to a 5th wave ending.
The short term movement however, I believe it has not completed its downward movement as there is one more leg to go. I am also seeing a potential flag formation which will leads to SGD1.40. IF the break out is t this point, then the wedge objective will be at SGD1.50.
Nevertheless, the indicators are inching up with divergence on the third round.
This chart is definitely interested to look at.
On the hind side, my company is of European origin. With it our account are based on EUR. Therefore in European context, Singapore is definitely a much more expensive operation and it may lead to potential downsizing. Although I must say, Singapore is still much cheaper than China and Taiwan since they are more or less pegged to USD. Especially when China's cost of living has now sky rocketed making it a no no for investment. Plus the deterioration of the Chinese government, I am not surprise that China's mess will be worsening.
The one thing tat I can hope now is that when China fall out of grace, business will again return to Asean.
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