USD/THB: Potential upside lies ahead – UOB

Markets Strategist Quek Ser Leang at UOB Group noted USD/THB could see its upside bias renewed in the near term.

Key Quotes

24-hour view: “We highlighted last Monday (27 Mar, spot at 34.27) that USD/THB ‘appears to have moved into a consolidation phase’ and we expected it to ‘trade in a range between 33.95 and 34.55’. Our view for consolidation was not wrong even though USD/THB traded in a narrower range than expected (34.02/34.55).”

“The underlying tone appears to have improved somewhat and USD/THB is likely to edge higher this week. However, a sustained advance above 34.55 is unlikely. The next resistance at 34.75 is not expected to come under threat. Support is at 34.20, a breach of 34.05 would indicate that the current mild upward pressure has eased.”