USD/THB risks further decline near term – UOB

FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research sees USD/THB weakening further in the short term.

Key Quotes

“We highlighted last Monday (01 Aug, spot at 36.27) that USD/THB ‘could dip below the rising trend-line support at 35.92’. We added, ‘the next major support at 33.58 (55-day exponential moving average) is not expected to come into the picture’.”

“The anticipated weakness exceeded our expectations as USD/THB dropped to 35.54 on Friday before rebounding quickly. While further USD/THB weakness is not ruled out this week, oversold conditions suggest a sustained decline below 35.50 is unlikely (next support is at 35.20). Resistance is at 36.05 but only a break of 36.36 would indicate that the current downward pressure has eased.”