USD/THB: Tough support aligns at 36.10 – UOB

Quek Ser Leang, FX Strategist at UOB Group’s Global Economics & Markets Research, noted that further decline in USD/THB is likely to meet solid contention around 36.10.

Key Quotes

“Our view for USD/THB to ‘rise above 36.95’ last week was incorrect as it dropped below the rising trend-line support. Daily MACD is weakening rapidly and this coupled with the breach of the rising trend-lines support is likely to lead to a lower USD/THB this week.”

“That said, any weakness is expected to encounter solid support at 36.10. On the upside, resistance is at 36.60 but only a breach of 36.80 would indicate the current downward pressure has eased.”