USD/KRW may fall to 1260.20 - 1281.40

Our pivot point is at 1364.10.

Our preference

The downside prevails as long as 1364.10 is resistance.

Alternative scenario

Above 1364.10, look for 1399.90 and 1421.30.

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 negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 1370.10 and 1374.80). Finally, the USD/KRW is trading below its lower Bollinger band (standing at 1338.74).

Supports and resistances

1421.30 **

1399.90 *

1364.10 **

1350.00

1332.54 last

1281.40

1260.20 **

1239.10 *

1218.00 **

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