USD/KRW set to advance nicely towards 1,597/1,600 – Credit Suisse

USD/KRW has breached its long-term channel. This move raises thoughts of a potential move to 1,597/1,600, in the opinion of analysts at Credit Suisse.

Current correction seen as a temporary pause

“USD/KRW has seen a major breakout above its long-term channel in August, which sets the market on course for an accelerated move higher. Whilst the current correction is seen as a temporary pause after RSI has reached oversold levels across all time frames, our core USD/KRW view remains bullish.”

“We think further ascent to the 78.6% retracement of the 2009/2014 uptrend at 1,471 is likely to follow. Should we also see a direct break higher here, this would raise a serious prospect of eventually reaching 1,597/1,600 – the 2009 high.”