Still scope for a move above 37.00 – UOB

In the opinion of Markets Strategist Quek Ser Leang UOB Group, USD/THB could still advance further and surpass the 37.00 hurdle in the near term.

Key Quotes

We highlighted last Monday (25 Sep, spot at 36.03) that “While further USD/THB is not ruled out at a later stage, this week, USD/THB is more likely to consolidate in a range of 35.68/36.35.” Instead of consolidating, USD/THB continues to strengthen, as it rose to a high of 36.835 before ending the week on a strong note at 36.63 (+0.52%). The rapid rise over the past few weeks is severely overbought. However, the advance is not showing any sign of easing yet.

This week, USD/THB could rise to 37.05 before the risk of a pullback increases. The next major resistance at 37.50 is unlikely to come into view. In order to maintain the momentum, USD/THB must stay above 36.30 (minor support is at 36.50).