USD/THB: UPSIDE MITIGATED BELOW 33.60 – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted that USD/THB could see its upside bias alleviated once 33.60 is cleared.

KEY QUOTES

“In our update from last Monday (27 Sep, spot at 33.67), we highlighted that ‘overbought conditions coupled with early signs of waning momentum indicates that USD/THB is unlikely to strengthen from here’ and we expected USD/THB to ‘trade between 33.40 and 33.95.”

“USD/THB subsequently traded between 33.63 and 33.99. Upward momentum has waned further and the chance for USD/THB to break the rising trend-line support (currently at 33.60) has increased.”

“A break of the trend-line would indicate that the USD/THB strength from early September has run its course.”