Thai Baht (THB) Near 2-yr High Still Quiet

Thai Baht (THB) Near 2-yr High Still Quiet

Thai Baht
The baht rose to near two-year highs, buoyed by strong current account surplus and portfolio inflows. Data on Monday also showed that international tourist arrivals in Thailand rose 4.6 per cent in May from a year earlier, with revenue up 6.9 per cent. Tourism accounts for 12 per cent of Southeast Asia’s second-largest economy.

Most Asian emerging currencies moved only marginally on Tuesday, as traders awaited a Federal Reserve meeting that is expected to raise the US benchmark interest rate and signal the pace of further hikes in 2017. The biggest mover was the Thai baht, which strengthened 0.3 per cent to a near two-year high.

The baht traded at 33.87 per dollar on Wednesday.
It has appreciated 5.7 percent against a softer greenback so
far this year, becoming Southeast Asia’s best performing
currency but adding to difficulties facing the country’s
exporters.
Earlier on Wednesday, Bank of Thailand Governor Veerathai
Santiprabhob said there had been more foreign funds flowing into
Thailand, the same trend as in other emerging economies.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 34.43.

The projected upper bound is: 34.19.

The projected lower bound is: 33.71.

The projected closing price is: 33.95.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 21 white candles and 25 black candles for a net of 4 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 51.7241. This is not an overbought or oversold reading. The last signal was a buy 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 38.99. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 55 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -72. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.

Rex Takasugi – TD Profile

FOREX THB= closed up 0.030 at 33.960. Volume was 11% below average (neutral) and Bollinger Bands were 20% narrower than normal.

Open     High      Low       Close     Volume
33.930  33.980  33.880  33.960  10,296

Technical Outlook
Short Term:               Neutral
Intermediate Term: Bearish
Long Term:                Bearish

Moving Averages: 10-period  50-period  200-period
Close:                       33.98         34.32          34.96
Volatility:                3                 4                  5
Volume:                  10,865       10,935        10,260

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX THB= is currently 2.9% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of THB= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on THB= and have had this outlook for the last 20 periods.

“Investing in Thailand? Contact Us.”

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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