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KRW: Fibo Support Under Pressure With Double Top Pattern Emerging


CNH/KRW is testing support from the 23.6% retracement of the Dec 7 - Feb 5 rally at KRW171.96. The pair has already slid through Feb 3 low of KRW172.22, which limited losses yesterday, charting a double top reversal pattern. The move occurs amid tight liquidity conditions, with both China and South Korea off for holidays.

  • A clean break under the aforementioned Fibo support would confirm that bearish momentum continues to build up after the RSI crossed below 70 earlier this week. Next support comes at KRW170.60, which represents the 200-DMA.
  • On the topside, a rebound above Feb 5 high of KRW173.87 is needed to generate fresh bullish impetus. A break here would clear the way to Sep 16 & 3 high, located in the KRW174.15-34 area.

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