USD/THB faces some range bound trade near term – UOB

UOB Group’s Market Strategist Quek Ser Leang suggests USD/THB could now navigate within the 33.90-34.65 range in the short-term horizon.

Key Quotes

“We highlighted that last Monday (13 Feb, spot at 33.75) that ‘short-term upward momentum is beginning to build and the bias for USD/THB this week is tilted to the upside’. We added, ‘Looking ahead, the next resistance above 34.00 is at 34.20’.”

“The anticipated USD/THB exceeded our expectations as it took out both 34.00 and 34.20 and surged to a high of 34.64. The sharp and rapid rise in a short time suggests the advance is likely overdone. In other words, USD/THB is unlikely to strengthen much. This week, USD/THB is more likely to consolidate between 33.90 and 34.65.”