USD/KRW technical analysis: Rises to key trendline hurdle, BOK keep rates unchanged
|- USD/KRW is revisiting former support-turned-resistance of a key rising trendline.
- USD/KRW created a bearish outside day pattern on Thursday.
USD/KRW picked up a bid around 1,207 earlier today and is now probing the resistance of the trendline connecting July 1 and July 31 lows. As of writing, the trendline hurdle is located at 1,210.
A strong rejection at the trendline hurdle and a drop below $1,207 (Thursday's low) would validate the bearish outside bar candlestick pattern created yesterday and invite stronger selling pressure, possibly leading to a drop to 1,199 (Aug. 21 low).
The Bank of Korea kept the interest rates unchanged at 1.5% earlier today. So, the pair could drop below $1,207 later today.
However, a majority of economists polled by Reuters expect the central bank to cut rates to a record low of 1.25% at the Oct. 17 meeting.
So, dips to 1,199, if any, could be reversed ahead of the BOK's October meeting.
Daily chart
Trend: bearish below 1,207
Pivot points
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.