SGD/MYR holds steady as buyers dominate short-term action

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Singapore Dollar vs Ringgit up 0.54%

Highlights

The Malaysian ringgit gained 0.2% and the Singapore dollar slipped 0.1% in response to changes in US dollar sentiment.
Relative strength differences between the ringgit and Singapore dollar influenced cross-rate movement in the SGD/MYR regional forex pair.
SGD/MYR trades with strong bullish momentum and is expected to range between RM3.1762 and RM3.2082 over the next 2 to 3 days.

Diverging ringgit and Singapore dollar moves drive pair’s trajectory

According to Economictimes Indiatimes, on August 18, the Malaysian ringgit posted a 0.2% gain while the Singapore dollar saw a 0.1% decline, as both currencies responded to shifts in US dollar sentiment. This divergence between the constituent currencies influenced the trajectory of the SGD/MYR pair, with underlying flows shaped by market reactions to US policy expectations. The resulting cross-rate action reflects the interplay between relative strength in the ringgit and minor softness in the Singapore dollar within the regional forex landscape.

Technical momentum firm despite overbought warning signals

On the h1 timeframe, SGD/MYR is trading above the MA-20 at RM3.1813 and MA-50 at RM3.1783, while on the daily chart, the spot remains well above the MA-200 at RM3.125. The Ichimoku Kijun level at RM3.1839 provides immediate support. Momentum indicators remain strong: MACD and ADX confirm persistent upside pressure, and the Awesome Oscillator aligns with this view. However, RSI at 76.85, alongside overbought signals from both CCI and Stochastic RSI, highlight increasingly stretched conditions. Bull/Bear Power indicates buyers continue to dominate intraday trading.

Consolidation expected as breakout risks shape short-term outlook

Over the next 2–3 trading days, SGD/MYR is likely to consolidate within a typical volatility band between RM3.1762 and RM3.2082. The probability of further gains remains elevated, while downside risks are limited. The base scenario anticipates sideways action in this range, with a breakout above RM3.2082 potentially signaling further upside, and a break below RM3.1762 pointing to a reversal toward lower levels.

Anton Kharitonov, expert at Traders Union, notes that SGD/MYR continues to show technical strength above key moving averages and support levels. He sees momentum indicators pointing to persistent upside, but warns that overbought conditions could trigger a pause or short-term reversal. The analyst remains cautious given the relative moves in regional currencies and the risk of consolidation within the RM3.1762–RM3.2082 range. "Base scenario is sideways action, and I would only expect further gains if RM3.2082 breaks convincingly."

Earlier, analysts noted that the bullish trend in SGD/MYR was supported by technical momentum, though checked by signs of overbought conditions and divergent oscillators. The current article reinforces this view by highlighting persistent upside pressure alongside stretched technical signals, making a potential volatility breakout above RM3.2082 a key short-term risk to monitor.

Source of Data: SGD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.