Markets Strategist Quek Ser Leang at UOB Group notes that further upside lies ahead for USD/THB.

Key Quotes

“Last Monday (22 May, spot at 34.40), we held the view that USD/THB ‘has room to test 34.55 before the risk of a more sustained pullback increases’. We added, ‘the next resistance at 34.75 is unlikely to come into view’. The anticipated USD/THB strength exceeded our expectations as USD/THB soared to a high of 34.80 before ending the week on a strong note at 34.78 (+1.15%).”

“Upward momentum remains strong and while further USD/THB strength this week will not be surprising, severely overbought conditions suggest a sustained break above 35.05 is unlikely. The next major resistance at 35.30 is unlikely to come under threat. Support is at 34.60; a breach of 34.40 would indicate USD/THB is not advancing further.”