Thai Baht: Recovery seen shallow without USD fade – OCBC

Christopher Wong at OCBC notes USD/THB’s recent rebound is running into interim resistance around 33.40 after a sharp move higher. Bank of Thailand officials attribute THB weakness mainly to broad USD strength and Thai equity outflows, while signalling readiness to manage excessive FX moves. Softer Oil may slow USD/THB upside, but THB recovery could stay shallow unless USD momentum fades and Gold prices stabilise.

Interim resistance caps rebound

"USD/THB’s rebound is showing signs of running into interim resistance around the 33.40 levels, after a sharp move higher last week."

"BoT officials recently attributed THB weakness mainly to broad USD strength and Thai equity outflows, while also signalling readiness to manage excessive FX moves."

"Overall, softer oil can help slow USD/THB upside, but THB recovery may remain shallow unless USD momentum fades, oil stay contained portfolio outflows and gold prices stabilise."

"Support at 33.20, 33 levels. Resistance at 33.41 (61.8% fibo retracement of 2025 high to 2026 low)."

"USD/THB last seen at 33.28 levels. Mild bullish momentum on daily chart remains intact though RSI shows signs of easing from overbought conditions. Retracement lower not ruled out."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)