FxWirePro: South Korean Won Falls on the Back of Lower Than expected Industrial Production Data
- USD/KRW is currently trading around 1191 levels.
- It made intraday high at 1191 and low at 1187 levels.
- Intraday bias remains bullish till the time pair holds key support at 1177 marks.
- A daily close above 1194 is required to drag the parity higher towards key resistances at 1195, 1201, 1209 (20D EMA) and 1220 (March 03, 2016 high) marks respectively.
- Alternatively, a sustained close below 1182 will tests key supports at 1172, 1162, 1153 (November 2015 low) /1142 (20D EMA)/ 1134/1127 (October 2015 low) /1121/1115 levels respectively.
- Daily chart showing the 20D EMA has crossed over 30D and 55D EMA, which signals bullish trend. In addition, a sustained close above 1194(high as on May 24, 2016) is also required to confirm the same.
- South Korea’s April industrial output y/y decrease to -2.8 % (forecast -1 %) vs previous -0.6 % (revised from -1.5 %).
- South Korea’s April service sector output stays flat at 0.5 % vs previous 0.5 % (revised from 0.8 %).
We prefer to take long position in USD/KRW only above 1194, stop loss 1177 and target 1209 marks.