Halister News

(Bloomberg) -- USD/KRW may consolidate near term even if BOK refrains from dovish signals at its central bank meeting tomorrow, as momentum studies suggest the pair is oversold, Bloomberg strategist David Finnerty writes.

• FX pair currently down 1.1% to 1,094.15, breaching support at 1,098.64, 61.8% Fibonacci retracement of July 2014 to Feb. 2016 rally
• Slow stochastics are in oversold territory with a %D reading of 10, indicating pair may need to consolidate while oversold conditions are worked off
• Bollinger band studies similarly indicate pair’s downside may be stretched as they test lower boundary
• USD may find broad support next week if FOMC minutes sound more hawkish than expected or U.S. CPI beats forecasts
• Bank of Korea is expected to leave its 7-day repo rate unchanged at 1.25%, according to all 19 economists in Bloomberg survey; decision due tomorrow
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.