USD/KRW technical analysis: Rises to key trendline hurdle, BOK keep rates unchanged

USD/KRW is revisiting former support-turned-resistance of a key rising trendline.
USD/KRW created a bearish outside day pattern on Thursday.

Omkar Godbole FXStreet Contributor

USD/KRW picked up a bid around 1,207 earlier today and is now probing the resistance of the trendline connecting July 1 and July 31 lows. As of writing, the trendline hurdle is located at 1,210.

A strong rejection at the trendline hurdle and a drop below $1,207 (Thursday's low) would validate the bearish outside bar candlestick pattern created yesterday and invite stronger selling pressure, possibly leading to a drop to 1,199 (Aug. 21 low).

The Bank of Korea kept the interest rates unchanged at 1.5% earlier today. So, the pair could drop below $1,207 later today.

However, a majority of economists polled by Reuters expect the central bank to cut rates to a record low of 1.25% at the Oct. 17 meeting.

So, dips to 1,199, if any, could be reversed ahead of the BOK's October meeting.

Daily chart

Trend: bearish below 1,207

Pivot points

1. R3 1223.42
2. R2 1220.21
3. R1 1214.67
PP 1211.46
1. S1 1205.91
2. S2 1202.7
3. S3 1197.16

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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