USD/THB could still test 32.85 – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted USD/THB could push higher and reach 32.85.

Key Quotes

“We highlighted last Monday that ‘impulsive upward momentum suggests that USD/THB could strengthen further’ but we were of the view that ‘the major resistance at 32.50 is likely out of reach’.

“The subsequent USD/THB strength exceeded our expectations as it popped to a high of 32.73 on Friday before easing off. Despite deeply overbought conditions, there is room for USD/THB to test 32.85 first before a more sustained pullback can be expected.”

“For this week, a break of the 2020 high of 33.18 would come as a surprise (there is another minor resistance at 33.00). Support is at 32.37 followed by 32.25.”