Thai Baht (THB) Strongest It Has Ever Been

Thai Baht (THB) Strongest It Has Ever Been

The Thai baht rose to 33.94 baht per USD, a record high in the past two years after the Bank of Thailand (BOT) decided not to take measures to stop the rise of the domestic currency.

The Bank of Thailand remains worried about a strong baht and short-term capital inflows, the governor said to the Bangkok Post, as the currency traded near its highest against the dollar in more than 22 months.

On Monday, the central bank relaxed foreign exchange rules, letting more Thais buy securities overseas and commercial banks lend baht to non-residents for investment in Thailand and the Greater Mekong sub-region.

But the move failed to prevent the bath to continue on its rising trend. The baht edged up to 33.94 to the dollar Tuesday, marking its highest point in nearly two years. The local currency is one of the best-performing currencies in the region this year, rising about 5% against the dollar.

The Thai baht is one of the best-performing currencies in Asia, ranking fifth since 2016, following the won of the Republic of Korea (up 7.9 percent), Taiwan dollar (7.2 percent), Indian rupee (5.9 percent) and Malaysian ringgit (5.5 percent).

Past moves to try to weaken the baht have failed. Some business analysts believe Thais just prefer to keep their money at home and don’t like to invest in foreign assets.

Technical Analysis

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 34.18.

The projected lower bound is: 33.72.

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 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 23 black candles for a net of 1 white 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 54.7611. This is not an overbought or oversold reading. The last signal was a buy 18 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 43.29. 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 65 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 -17. This is not a topping or bottoming area. The last signal was a buy 11 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 16 period(s) ago.

Rex Takasugi – TD Profile

FOREX THB= closed up 0.040 at 33.960. Volume was 51% below average (consolidating) and Bollinger Bands were 70% narrower than normal.

Open     High      Low       Close     Volume
33.910   33.980  33.900  33.960  5,566

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

Moving Averages: 10-period  50-period  200-period
Close:                       33.96         34.24          34.92
Volatility:                2                  4                 5
Volume:                   9,743         10,642       10,469

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 2.7% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 30 periods.

“Investing in Thailand? Contact Us.”

The following two tabs change content below.

Ivy Heffernan

My name is Ivy Heffernan, and I am interested in a wide range of professions. Economics and politics at the age of 18 is easy when your father has a Ph.D in economics, i have been taught to put together technical analyst and stay up to date with the changing markets as well as what is happening in the political world.

You must be logged in to post comments :  
CONNECT WITH