Societe Generale analysts report that the USD/KRW currency pair has experienced a significant correction after dropping below its 200-day moving average, which is currently near 1478 [1]. The pair is now testing an ascending trend line established since 2023, with interim support identified at the 1407 level [1]. According to the analysts, a break above 1425, the peak reached earlier in the week, would be necessary to confirm a short-term bounce in the pair [1]. Conversely, if USD/KRW fails to hold the 1407 support, the decline could extend further toward the next downside projections at 1388/1385 and 1375 [1].
The report highlights that the South Korean Won has been leading regional performance in Asia, with a rally from around 1,560 in early July to near 1,415 [1]. However, the rally is now showing signs of fatigue, suggesting that the recent gains may be losing momentum [1].
No specific market reactions or analyst opinions beyond the technical outlook are provided in the source. There are no forward-looking statements regarding broader economic implications or policy changes [1].
CONCLUSION
Societe Generale identifies 1407 as a critical support level for USD/KRW, with further downside possible if this level fails to hold. The South Korean Won's recent rally appears to be slowing, indicating potential caution for market participants.