USD/KRW may rise 699 - 1009 pips

Our pivot point is at 1377.80.

Our preference

The upside prevails as long as 1377.80 is support.

Alternative scenario

The downside breakout of 1377.80 would call for 1372.50 and 1369.40.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 1379.60 and 1379.60). Finally, the USD/KRW has crossed above its upper Bollinger band (1382.78).

Supports and resistances

1399.80 **

1396.70 *

1393.50 **

1390.40

1383.41 last

1379.80

1377.80 **

1372.50 *

1369.40 **

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