USD/KRW Price Analysis: South Korean won slips from multi-day tops, eyes $1,230

USD/KRW rebounds from a four-day low of 1,220.81, snapping the recent losing streak, in response to broad-based bounce in the US dollar and bearish South Korean economic outlook.

The South Korean won corrected nearly 0.50% after President Moon Jae-in said on Tuesday, the economic growth readings from Asia’s fourth-largest economy are likely to deteriorate in the second quarter, as the coronavirus impact will likely deepen going forward.  

Meanwhile, the South’s warning to remain cautious about the various reports doing the rounds, with regard to the North Korean leader Kim Jong-Un’s health condition also seems to bode ill for the domestic currency.

On the other hand, the US dollar benefits from the risk-off market mood, as the US-China conflict over the virus response from the latter and economic contraction worries alongside the oil-price slump dampened the sentiment.

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.

At the time of writing, USD//KRW rises 0.43% to trade near 1,227, with the bulls looking to regain the 10-DMA at 1,228.77 en route 1,230. Alternatively, the 50-DMA at 1,219.44 caps the immediate downside, a break below which a test of the 1,200 level will be inevitable.

South Korean won: Additional levels to watch