USD/THB faces a strong resistance around 36.50 – UOB

Pablo Piovano FXStreet

Further upside remains likely in USD/THB, although a visit to the 36.50 zone seems not favoured for the time being, argues Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

While we expected USD/THB to weaken last week, we highlighted that “in view of the oversold conditions, it remains to be seen if 35.05 is within reach.” We added, “Resistance is at 35.75; a breach of 36.01 would mean that USD/THB is not weakening further.” USD/THB then weakened less than expected to 35.38 before staging a surprisingly sharp rebound to 36.07.

This week, USD/THB could continue to rebound, but any advance is unlikely to break above the major resistance at 36.53 (there is another resistance at 36.35). On the downside, if USD/THB breaks below 35.65 (minor support is at 35.85), it would indicate that it is not rebounding further.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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