USD/THB risks a potential correction lower – UOB

In opinion of Quek Ser Leang at UOB Group’s Global Economics & Markets Research, USD/THB could attempt to test 33.55 ahead of a probable corrective move.

Key Quotes

“We highlighted last Tuesday (10 Aug, spot at 33.45) that ‘while conditions are deeply overbought, further USD/THB strength is not ruled out’. We added, ‘the next resistance is at 33.60 followed by 33.80’.

“Our expectations did not materialize as USD/THB fell sharply to 32.96 before rebounding quickly. The rapid rebound has room to test 33.55 first before the risk of a deeper pullback would increase.”

“The next resistance at 33.80 is unlikely to come under threat.”