Long time I have not updated my view on this pair.
Self explanatory. Target still a bit far but let's be patient.
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I am not so convinced of this idea because of the weakening of the USD in the past sessions, specially after FED Powell comments.
I will give a try on this idea with a small position and place a SL (or total hedge) as per the chart. If I go for the hedge I will hold it till the orange dotted line at 32.200 and unhedge from there and open further longs...
Hello traders, this is the full breakdown of this pair. We will take this trade if all the conditions are satisfied as discussed in the analysis. Smash the like button if you find value in this analysis and drop a comment if you have any questions or let me know which pair to cover in my next analysis.
After a small correction to gain further sttrength, I think we are going to hit my target at last.
We remain inside an ascending channel and therefore take positions at the trendline support/resistance.
So far so good. Thai baht will continue to get smashed against the dollar for a bit longer till reaching the target. Fundamentally speaking Thailand is in deep pain after covid situation in the country.
Then what will happen.
Let's recall the fundamental of price when it reaches the medianline.
-zoom and zoom then retest the ML.
-reverse back the latest MLH.
If the price does zoom the ML, price could break the previous highest high. And we will have a major uptrend cycle.
We are currently in a very critical area with plenty of resistances, specially the black long term trendline that comes from all time high.
After hitting the first pullback target at 32.2 I was expecting a minor push from the USD followed by a further correction to 31.8 area or at least a retest of the previous bottom (32.2). Instead price broke 32.90 resistance...
I think the Thai Baht will strengthen a little bit against the USD, reaching the 31.800 area or at least a retest of 32.200 before another leg up of the USD.
As mentioned several times in my forex charts, I am expecting the USD the strengthen against most pairs and lead the global economic recovery worldwide.
32.9ish has proven to be a small resistance so far...
See the purple path drawn. I'm expecting price to move similar to that before the next big move of the USD.
Reasons behind my idea are that USD is now retracing against most pairs and then with new FED policy and stimulus could have a major impact in favor of the greenback.
Chockdee fellow traders :)