USD/THB 1H Chart: Reveal of dominant pattern
Updated
The previous review of the USD/THB currency exchange rate concentrated on the newly formed less steep bullish pattern. On Tuesday, the pattern was still in force, as the currency exchange rate was declining in the borders of it.
However, something else attracted the attention of Dukascopy Analytics. Namely, a long term, large scale channel up pattern was spotted on the larger time frame charts. It might be possible that in the near future the bounce off from this trend line forces the rate lower and gives it enough strength to break the medium scale ascending pattern.
However, in the short term watch the support of the 55-hour simple moving average, which clearly provided support on Tuesday.
However, something else attracted the attention of Dukascopy Analytics. Namely, a long term, large scale channel up pattern was spotted on the larger time frame charts. It might be possible that in the near future the bounce off from this trend line forces the rate lower and gives it enough strength to break the medium scale ascending pattern.
However, in the short term watch the support of the 55-hour simple moving average, which clearly provided support on Tuesday.
Note
The US Dollar had been consolidating against the Thai Baht for two months prior to swiftly changing this sentiment to bearish on Friday, August 17. Up until mid-today, the pair had plunged 1.73%, thus breaching two channels.
The most common market reaction to such plunges is a recover. Considering the strongly oversold technical indicators on the 1H and 4H time-frames, it is ve
The most probable upside target during the following week is the 55-, 100– and 200-period (4H) SMAs and the monthly PP circa 33.25. The breached channel line is likewise located in the given area.
In the unlikely event that some bearish pressure still prevails in the market, the Greenback should not exceed the 100-day SMA and the monthly S3 at 32.40.
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