USD/THB: Next support comes at 34.80 – UOB

Further decline in USD/THB is expected to meet the next contention zone around 34.80, notes Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

Our view for USD/THB to “rebound further” last week was incorrect. Instead of rebounding further, USD/THB plummeted to a fresh 21/2-month low of 35.00 before ending the week on a weak note at 35.14 (-2.52%). The outsized decline is severely oversold, but with no signs of stabilisation yet, USD/THB could weaken to 34.80 before stabilisation is likely.

The next support at 34.60 is unlikely to come under threat. Resistance is at 35.30; is USD/THB breaks above 35.60, it would mean the weakness has stabilised.