FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research suggests USD/THB could extend the upside to the 35.80 region in the near term.

Key Quotes

“We expected USD/THB to weaken last week but we were of the view that ‘a sustained decline below 35.50 is unlikely’. USD/THB subsequently weakened more than expected as it plummeted to a low of 35.06 last Thursday (11 Aug) before rebounding.”

“USD/THB extended its rebound during early Asian hours today and appears poised to move clearly above the declining trend-line resistance. The price actions suggest 35.06 is likely a short-term bottom and the rebound could extend to 35.80. For this week, the next resistance at 36.00 is unlikely to come under threat. On the downside, support is at 35.20. The 35.06 low is not expected to come into the picture.”