USD/THB: Further weakness on the table – UOB

Pablo Piovano FXStreet

Markets Strategist Quek Ser Leang at UOB Group suggests USD/THB could risk a deeper drop in the near term.

Key Quotes

Last Monday (30 Oct), when USD/THB was trading at 36.03, we held the view that “the ongoing pullback in USD/THB has scope to extend to 35.65 before stabilisation can be expected.” USD/THB did not break 35.65 until last Friday, when it plummeted to a low of 35.40. The surge in downward momentum is likely to lead to further weakness.

In view of the oversold short-term conditions, it remains to be seen if the next major support at 35.05 is within reach this week (there is another support at 35.25). Resistance is at 35.75; a breach of 36.01 would mean that USD/THB is not weakening 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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