USD/KRW to test 2018 low at 1054 on a weekly close below 1151/47 – Credit Suisse

USD/KRW is set to complete a large top beneath 1151/47 on a weekly closing basis, according to analysts at Credit Suisse who also believe a test of the 2018 low at 1054 is on the cards.

Key quotes

“USD/KRW gapped lower again and remains in a clear downtrend since breaking the March 2018 uptrend. A clear weekly close below the crucial support at 1151/47 – the current 2020 and July 2019 lows, as well as the 61.8% retracement of the 2018/2020 surge, would further reinforce the downfall and see a large topping structure complete, with next pivotal support seen at the 2019 and July 2018 lows as well as the 78.6% retracement at 1109/05.” 

“The size of the potential top suggests a test of the 2018 low at 1054 is very possible should the top be triggered.” 

“Resistance at the back of the broken March uptrend and 200-day average at 1191/98 ideally caps.”