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24 Dec 2013
Flash: Won looks set to retrace recent outperformance - ANZ
FXstreet.com (Bali) - From a technical perspective, the won looks set to retrace through some of its recent outperformance, notes Tim Riddell, Head of Global Markets Research at ANZ.
Key Quotes
"In USD/KRW terms, the extended moves down have held in front of the post-crisis low of 1046. Longer term patterns are yet to turn convincingly and so the trend of KRW strength could still be in play."
"However, the turn in daily momentum which has occurred as USD/KRW has broken its downchannel suggest that a period of corrective rebounds should form into 2014 and allow for retracements towards a minimal level of 1076-1078 if not the standard 1093 (38.2%) or even 1106 (50%)."
"Any dips need to remain above 1056 to sustain this rebound with the next near-term hurdle at 1066."
Key Quotes
"In USD/KRW terms, the extended moves down have held in front of the post-crisis low of 1046. Longer term patterns are yet to turn convincingly and so the trend of KRW strength could still be in play."
"However, the turn in daily momentum which has occurred as USD/KRW has broken its downchannel suggest that a period of corrective rebounds should form into 2014 and allow for retracements towards a minimal level of 1076-1078 if not the standard 1093 (38.2%) or even 1106 (50%)."
"Any dips need to remain above 1056 to sustain this rebound with the next near-term hurdle at 1066."