FX Strategist Quek Ser Leang at UOB Group’s Global Economics & Markets Research suggested further upside lies ahead for USD/THB.

Key Quotes

“Last Monday (29 Aug, spot at 36.42), we highlighted that ‘the rapid improvement in momentum suggests USD/THB could strengthen further’. However, we were of the view ‘July’s high at 36.95 is unlikely to come into the picture’. Our view turned out to correct as USD/THB rose to a high of 35.85 last Friday (02 Sep). Shorter-term conditions are deeply overbought but upward momentum remains strong.”

“For this week, USD/THB could rise above 36.95 but in view of the overbought conditions, it is unlikely able to maintain a foothold above this major resistance level. The next resistance at 37.15 is unlikely to come into the picture. Support is at 36.60 followed by the rising trend-line support, currently at 36.31. The rising trend-line support is unlikely to come under threat, at least for this week.”