USD/KRW forms potential Inverse Head and Shoulders pattern – Société Générale
|USD/KRW is forming the right shoulder of a potential Inverse Head and Shoulders, with the neckline near 1488. A breakout above this level could pave the way for gains toward 1497/1502 and 1525, Société Générale's FX analysts note.
Break above 1488 could trigger larger uptrend
"USD/KRW broke out from a multi-month base in September and gradually reclaimed the 200-DMA. 2024 peak of 1488 is an interim resistance. Interestingly, the pair appears to be forming the right shoulder of an Inverse Head and Shoulders."
"This pattern generally denotes upside potential. The neckline of the formation is near 1488. If USD/KRW breaks out above 1488, a larger uptrend may materialize. The next objectives could be located at projections of 1497/1502 and 1525. Recent pivot low of 1428 is a key support."
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