The USD/THB pair saw significant gains on Tuesday, increasing by 0.80% and reaching a level of 36.36. This rally was a result of bears failing to push the pair below the 100-day Simple Moving Average at 36.05. Despite stronger-than-expected inflation numbers in April’s US Consumer Price Index (CPI) data, the USD managed to hold its ground as the Federal Reserve (Fed) continues to urge patience regarding rate cuts.
The USD/THB pair is expected to maintain a steady pace in the near term due to the cautious stance of Fed officials and the market’s wait-and-see approach. However, upcoming economic data releases such as May’s S&P PMIs and April’s Durable Goods Orders from the US could potentially trigger movements in the pair. The release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday may also introduce volatility into the market.
Technical analysis of the USD/THB pair shows that the Relative Strength Index (RSI) is indicating a minor strengthening trend, moving away from oversold conditions. The Moving Average Convergence Divergence (MACD) histogram suggests a decrease in negative momentum, hinting at a possible shift in market balance. The pair remains bullish overall, supported by the 10 and 200-day SMAs, but a loss of the 20-day SMA indicates a slightly negative short-term trend.
Overall, the USD/THB pair is expected to continue trading within a limited range in the coming days, with potential volatility triggered by economic data releases and the FOMC meeting minutes. The market’s focus will remain on any updates from Fed officials regarding the timing of rate cuts and the health of the US economy. Traders should closely monitor technical indicators and key support and resistance levels for potential trading opportunities in the USD/THB pair.
