USD/THB: The 32.50 level appears far away for now – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research comments on the recent price action around USD/THB.

Key Quotes

“Our expectation for USD to ‘trade between 31.60 and 32.10’ last week was incorrect as it cracked 32.10 before surging to a high of 32.28 on Friday (02 Jul). The rapid rise was however, short-lived, as USD/THB dropped back down quickly.”

“After the strong surge, not surprisingly, conditions are overbought. However, impulsive upward momentum suggests that USD/THB could strengthen further this week.”

“That said, the next major resistance at 32.50 is likely out of reach. Support is at 32.00 followed by 31.85.”