USD/THB faces a tough support around 34.00 – UOB

According to Quek Ser Leang at UOB Group’s Global Economics & Markets Research, USD/THB appears well contained by the 34.00 region.

Key Quotes

“Last Tuesday (17 May), when USD/THB was trading at 34.62, we highlighted that ‘risk is shifting to the downside and a break of the rising trend-line support at 34.32 could potentially trigger a deeper pullback’. We added, ‘the major support at 34.00 is unlikely to come under threat this week’. USD/THB cracked the rising trend-line support on Friday and dropped to 34.24.”

“Downward momentum has improved and the risk for this week is still on the downside. However, the 34.00 level is a solid support and may not yield so easily. Overall, only a breach of 34.65 would indicate that the current downward pressure has eased.”