Chart Book | Chart of the day: Into 2018 with a bang

In the first week of 2018, Asian currencies have been on a roll, continuing to strengthen against the US dollar as they did in the fourth quarter of 2017, the South Korean won leading with the Malaysian ringgit and Thai baht not far behind; against this background stock market gains are all the more impressive. On January 5, the Stock Exchange of Thailand index managed a record high close (just shy of 1,800 points), a technically significant break which follows on from the strong rally in the second half of last year. Overbought, as it has been since October, bullish momentum is so strong that we favour a rapid rally to our measured and psychological target at 2,000, outlined three months ago.

Nicole Elliott is a technical analyst