USD/KRW Price Analysis: S. Korean won corrects from three-week lows despite poor GDP

USD/KRW falls further from 3-week tops despite S. Korea’s awful GDP data
US dollar pullback from two-week highs adds to the downside.
South’s third stimulus plan likely underpins the domestic currency.

Dhwani Mehta FXStreet

USD/KRW falls further from three-week highs reached at 1,241.23 reached earlier this week, as the South Korean won is on a recovery mode despite the bearish fundamentals.

The spot quickly faded a spike to 1,236.64 highs despite the South’s Q1 GDP having dropped by 1.4% q-q, the worst contraction since Q4 2008.

The downtick in USD/KRW could be also associated with the broad-based US dollar retreat from two-week highs, as the risk tone improved in Asia amid lockdown easing hopes worldwide.

Meanwhile, the won could be also benefiting from the third economic stimulus package announced by President Moon Jae-In on Wednesday. Moon said the government will increase policy financing rescue package to 135 trillion won, from 100 trillion won.

At the time of writing, USD//KRW sheds 0.10% to trade near 1,232, as the focus now shifts towards the US Jobless Claims data due later this Thursday.

South Korean won: Levels to watch

USD/KRW

Overview
Today last price	1232.40
Today Daily Change	-1.64
Today Daily Change %	-0.13
Today daily open	1234.05

Trends
Daily SMA20	1221.83
Daily SMA50	1215.2
Daily SMA100	1193.34
Daily SMA200	1191.09

Levels
Previous Daily High	1237.66
Previous Daily Low	1230.21
Previous Weekly High	1230.16
Previous Weekly Low	1209.64
Previous Monthly High	1292.5
Previous Monthly Low	1176.33
Daily Fibonacci 38.2%	1234.82
Daily Fibonacci 61.8%	1233.06
Daily Pivot Point S1	1230.29
Daily Pivot Point S2	1226.53
Daily Pivot Point S3	1222.84
Daily Pivot Point R1	1237.74
Daily Pivot Point R2	1241.42
Daily Pivot Point R3	1245.18

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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