South Korean Won: Gains target 1407 against US Dollar – Societe Generale

Societe Generale analysts note USD/KRW has corrected after losing its 200-day moving average near 1478 and is now testing an ascending trend line from 2023 around 1407. They see interim support at that level, with a break above 1425 needed to confirm a short-term bounce, while failure to hold 1407 could open 1388/1385 and 1375 on the downside.

Key trend support under pressure

"USD/KRW has staged a deeper pullback after falling below its 200-DMA (now near 1478)."

"The pair has reached the ascending trend line drawn since 2023, near 1407, which could provide interim support."

"A brief pause appears to be taking shape; however, a break above the peak reached earlier this week at 1425 will be crucial to confirm a short-term bounce."

"If the pair fails to defend 1407, the decline could extend toward the next projections at 1388/1385 and 1375."

"Elsewhere in Asia, the KRW continues to spearhead regional performance but the rally from around 1,560 in early July to near 1,415 is beginning to show signs of fatigue."