FxWirePro: South Korea's won turns weaker after surprise central bank rate cut
USD/KRW is currently trading around 1154 levels. It made intraday high at 1160 and low at 1152 marks. Today BOK cuts base rate by 25 bps to record-low 1.25 pct vs 1.50 pct previous release. Intraday bias remains bullish …
It made intraday high at 1160 and low at 1152 marks.
Today BOK cuts base rate by 25 bps to record-low 1.25 pct vs 1.50 pct previous release.
Intraday bias remains bullish till the time pair holds key support at 1152 marks.
A sustained close below 1152 will tests key supports at 1142 (20D EMA)/ 1134/1127 (October 2015 low) /1121/1115 levels respectively.
Alternatively, reversal from key support will drag the parity higher towards key resistances at 1168, 1176, 1182, 1196 (June 01, 2016 high), 1201, 1209 (20D EMA) and 1220 (March 03, 2016 high) marks respectively.
In addition, South Korea’s finance minister said, ‘BOK rate cut seen positive for economy’.
We prefer to take long position in USD/KRW only above 1158, stop loss 1152 and target 1176/ 1182 marks.
