USD/THB: Further weakness on the table – UOB

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.