According to OCBC’s Christopher Wong, the recent decline in the USD/KRW currency pair has stalled, with bearish momentum showing signs of fading and the Relative Strength Index (RSI) recovering from oversold territory [1]. Wong identifies technical support for USD/KRW at the 1460/64 levels and sees potential for a rebound toward 1492 in the near term [1]. He notes that two-way trading remains prevalent, with short-term bullish signals emerging for several currency pairs, including USD/KRW, USD/SGD, and USD/TWD [1].
Wong suggests that while near-term risks may be diminishing, a decisive breakthrough could trigger a risk-on surge, which would favor a proxy sell rally in USD/KRW [1]. However, he cautions that the timing of such a sentiment shift depends on the duration of ongoing ceasefire talks between the US and Iran, specifically on which party will make concessions first [1].
No specific market reactions or analyst forecasts beyond these technical observations are provided in the article. The analysis is focused on technical indicators and the potential for a short-term rebound before a possible renewed downside move, contingent on geopolitical developments [1].
CONCLUSION
OCBC’s analysis points to a possible short-term rebound in USD/KRW, with technical support at 1460/64 and upside potential toward 1492. Market participants are advised to monitor geopolitical developments, as a positive sentiment shift could trigger a proxy sell rally in the pair.