USD/THB risks further retracements – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted USD/THB remains poised for extra decline.

Key Quotes

“While we expected USD/THB to weaken last week, we were of the view that ‘the next major support at 32.56 is likely out of reach’. The subsequent weakness exceeded our expectations as USD/THB dropped to 32.56 last Wednesday (09 Feb). The rapid decline is oversold but with no sign of stabilization just yet, there is scope for the weakness in USD/THB to extend.”

“In view of the oversold conditions, the next major support at 32.18 is not expected to come into the picture. On a shorter-term note, 32.65 is already quite a strong support level. Resistance is at 32.85 but only a breach of 33.05 would indicate that the current weakness has stabilized.”