Thai Baht (THB) Two-Thirds of Thailand’s GDP Stalled

Thai Baht (THB) Two-Thirds of Thailand’s GDP Stalled

The purchasing power of major trade partners and production restructuring to keep up with demand are having larger effects on exports than the baht’s movement.
Also concerns that the baht’s persistent strength will stall the recovery of exports, which account for more than two-thirds of Thailand’s GDP. The baht has been among the best-performing currencies in Asia.

Technical Analysis

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 34.22.

The projected lower bound is: 33.79.

The projected closing price is: 34.01.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 23 white candles and 24 black candles for a net of 1 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 57.1432. This is not an overbought or oversold reading. The last signal was a sell 1 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 47.48. 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 72 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 29. This is not a topping or bottoming area. The last signal was a sell 0 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 23 period(s) ago.

Rex Takasugi – TD Profile

FOREX THB= closed down -0.060 at 34.020. Volume was 40% below average (neutral) and Bollinger Bands were 66% narrower than normal.

Open     High     Low       Close     Volume
34.070  34.100  33.950  34.020  6,637

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

Moving Averages: 10-period   50-period   200-period
Close:                       34.02          34.17           34.90
Volatility:                2                   4                  5
Volume:                  9,757            10,650        10,645

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 2.5% below its 200-period moving average and is in an upward 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 moderate flows of volume into THB= (mildly bullish). Our trend forecasting oscillators are currently bullish on THB= and have had this outlook for the last 6 periods.

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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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