USD/THB: Scope for a retest of 34.55 – UOB

Markets Strategist Quek Ser Leang at UOB Group sees chances of USD/THB to revisit the 34.55 level in the near term.

Key Quotes

“We expected USD/THB to rebound further but we were of the view that ‘any advance is unlikely to break the major resistance at 34.20 this week’. We did not anticipate the surge in momentum as USD/THB soared to a high of 34.52. While short-term conditions are rather overbought, the rapid rise in USD/THB has room to test 34.55 before the risk of a more sustained pullback increases.”

“The next resistance at 34.75 is unlikely to come into view. On the downside, a break of 34.05 (minor support is at 34.20) would indicate that the current upward pressure has faded.”