The USD/THB pair had a slightly negative session during the day on Tuesday, but quite frankly this is a market that has been grinding away to the upside for some time now. While most of you will have never traded the Thai baht, this is an excellent pair as far as I’m concerned because as you can see it tends to grind in a nice trend for long periods of time. This is a longer-term type of trader’s market, but I like the fact that we certainly have clearly when it comes to movement.
Looking at this market, you can see that we are hanging about the 36 handle, which of course is a large, round, psychologically significant number and an area that we have seen quite a bit of interest in recently anyway. With that being the case, I think that it’s only a matter of time before we continue the upward slope that we have seen for some time.
100 Day Exponential Moving Average
The 100 day exponential moving average has been grinding its way higher, and offering dynamic support since the beginning of October. I believe this shows that the longer-term traders are interested in going long, and it makes sense quite frankly as the US dollar is considered to be a bit of a “safety currency”, and that the Thai baht represents Southeast Asia, not exactly a hotbed of what I would consider to be economic stability, as a lot of traders will put money into that region only when they feel that economic risk appetite has returned. I do not think it has to this point, so quite frankly I will continue to be bullish of this market.
Having said that though, you have to keep in mind that this pair does not move very rapidly. In fact, you should not enter this pair unless you plan on being in the trade for at least a week, possibly even more. There have been times where I have traded this pair for several months at a time.
