Markets Strategist Quek Ser Leang at UOB Group notes USD/THB faces a solid barrier at the 34.20 level.

Key Quotes

“Last Monday (07 Feb, spot at 33.62), we highlighted that ‘deeply overbought conditions suggest USD/THB could consolidate for a couple of days first before heading higher’. While USD/THB subsequently consolidated, it did not make any headway on the upside. That said, short-term upward momentum is beginning to build and the bias for USD/THB this week is tilted to the upside.”

“Overall, barring a breach of 33.35 (minor support is at 33.55), the chance of USD/THB breaking 34.00 is increasing. Looking ahead, the next resistance above 34.00 is at 34.20.”