OCBC strategists Sim Moh Siong and Christopher Wong highlight that the USD/KRW rate has risen towards 1.495, reflecting the high beta level of the KRW rate during geopolitical tensions and energy price spikes. With the bull market continuing and the RSI rising, risk is shifting upwards, with resistance at 1,500 and 1,510 and support at 1,470, although assurances from policymakers and any resolution to the conflict could sluggish the depreciation and ultimately cause a turnaround.
Swing upwards while policymakers remain vigilant
“KRW was among the worst performers, with USDKRW rising towards 1495 at one point overnight, highlighting the high beta characteristics of KRW during periods of geopolitical tensions and energy price spikes.”
“The bullish momentum on the daily chart has not changed while the RSI shows signs of rising.”
“The risk has tilted to the upside. Resistance at levels 1,500, 1,510.”
“Support at 1,470. It said policymakers were quick to calm markets this time and more decisive steps could help slow the pace of depreciation.”
“For a turnaround to occur, it would be necessary to end the conflict and resume shipping routes and oil flows.”
(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor.)
