Societe Generale strategists report that the recent upward movement in the USD/KRW currency pair stalled around the 1390 level, and the pair is now testing the lower end of its consolidation range, indicating that the broader downtrend may be resuming [1]. The strategists highlight that the South Korean Won rallied to 1333 against the US Dollar, marking its strongest level in two years. This appreciation was attributed to a broad retreat in the US Dollar, a pullback in oil prices, and corporate dollar sales [1].
If a brief rebound in USD/KRW occurs, resistance is expected at the 1367/1372 range, which was the high achieved earlier in the month [1]. Should the pair fail to overcome this resistance, Societe Generale identifies downside objectives at 1318 and further at 1303/1297 [1]. The analysis suggests that the inability to break above these resistance levels may result in a continuation of the decline in USD/KRW [1].
No specific market reactions or analyst opinions beyond the technical outlook are provided in the source article [1].
CONCLUSION
Societe Generale sees the South Korean Won's uptrend against the US Dollar resuming, with key resistance and downside targets identified. The technical outlook points to further KRW strength if USD/KRW fails to break above the 1367/1372 resistance zone.