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USD/KRW has had a strong start to the....>

KOREAN WON
KOREAN WON: USD/KRW has had a strong start to the year - but is it here to stay?
A sell-off into the year-end halted as the price approached support from the Nov
8 low of KRW1,153.95. Jan 2 saw USD/KRW open just below the level, before
staging a dynamic recovery and charting a piercing line candlestick pattern that
heralds a bullish reversal. The latest bounce allowed USD/KRW to avoid the
formation of a longer-term head and shoulders top, for now.
- The main driver of the recent rally was the U.S. killing of a top Iranian
military commander in a targeted drone strike. KRW was hit with a double-whammy
of a risk-off market reaction and a sudden jump in crude prices, to which South
Korea (it imports virtually all of domestic oil consumption) is exposed.
- That being said, USD/KRW erased yesterday's gains at the open today, calling
the durability of the recent rally into question. The pair responded to a
sell-off in USD seen on Monday after KRW finished trading & the moderation of
Mideast worries. The 50-DMA at KRW1,171.20 draws bullish attention, ahead of the
KRW1,176.51 200-DMA. Bears keep an eye the Jan 2 low of KRW1,153.75.
- See chart at: https://emedia.marketnews.com/USDKRW07012020.png

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