USDKRW to extend its slide toward cluster of supports at 1,293/1,319 – Credit Suisse

USDKRW has triggered a top, exposing 1,359. Notwithstanding,analyst at Credit Suisse look for a better floor at 1,293/1,319.

A deeper setback is likely to unfold

“USDKRW has extended its decline and the market is now seen below the 55-day average and a recent price low at 1,403/1,397. This break lower in our eyes has triggered a bearish top and with weekly MACD also rolling over, we think that a deeper setback is likely to unfold.” 

“Support is seen at the 23.6% retracement of the 2021/22 rise at 1,359 initially, though below here would likely find a significantly stronger floor at a cluster of supports at 1,293/1,319, which includes the broken channel support, the 38.2% retracement, the 2020 high and the 200-day average.”