USD/KRW to extend its slide on a dip under 1393/84 – SocGen

USD/KRW faced stiff resistance near 1444 earlier this week resulting in a sharp decline. The pair could suffer further losses in case support at 1393/84 fails, economists at Société Générale report. 

Defending 1393/84 can result in a bounce towards 1426

“USD/KRW is in vicinity to potential support at 1393/1384 representing the daily Kijun line. Defending this zone can result in a bounce towards 1426, the 61.8% retracement of the pullback and 1444. It would be interesting to see if the pair can re-establish beyond this hurdle.” 

“In case the support at 1393/1384 gets violated, a retest of 50-DMA near 1360 is likely.”