Markets Strategist Quek Ser Leang at UOB Group sees the likelihood of extra gains in USD/THB in the short-term horizon.

Key Quotes

“We highlighted last Monday (08 May, spot at 33.95) that USD/THB ‘could consolidate first before dropping to 33.54’. We added, ‘in order to keep the current momentum going, USD/THB must stay below 34.23’. While USD/THB fell as expected, it rebounded from a low of 33.50.”

“Downward momentum has faded and this combined with oversold conditions suggests USD/THB could rebound further. However, any advance is unlikely to break the major resistance at 34.20 this week. On the downside, support is at 33.65, followed by 33.50. The latter level is a rather strong support now.”