USD/THB faces extra gains near term – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research comments on the prospects for USD/THB in the near term.

Key Quotes

“While we expected USD/THB to strengthen last Monday (22 Nov, spot 32.87), we were of the view that ‘the declining trend-line resistance is unlikely to come into the picture’. However, USD/THB easily cracked the trend-line and surged to a high of 33.76 on Friday. Strong upward momentum is likely to lead to further USD/THB strength.”

“That said, the year-to-date high at 34.00 could be just out of reach for this week. Support is at 33.48 followed by a solid level at 33.14. Looking ahead, the next resistance level above 34.00 is at 34.25.”