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.

Omkar Godbole FXStreet Contributor

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

1. R3 1223.42
2. R2 1220.21
3. R1 1214.67
PP 1211.46
1. S1 1205.91
2. S2 1202.7
3. S3 1197.16

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.