USD/KRW may fall 481 - 721 pips

Our pivot point stands at 1363.80.

Our preference

The downside prevails as long as 1363.80 is resistance.

Alternative scenario

The upside breakout of 1363.80, would call for 1367.80 and 1370.20.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 1359.80 and 1363.70). Finally, the USD/KRW is trading below its lower Bollinger band (standing at 1355.97).

Supports and resistances

1370.20 **

1367.80 *

1363.80 **

1362.20

1355.91 last

1351.10

1348.70 **

1346.30 *

1343.90 **

Number of asterisks represents the strength of support and resistance levels.