Taiwan’s economy has withstood the impact of Covid-19 better than Korea. Strategists at TD Securities have bought the TWD/KRW pair.
Key quotes
“KRW is more risk and USD sensitive than TWD and reacts more negatively as risk aversion intensifies.”
“Korea is more exposed to supply chain shifts and value-added trade compared to Taiwan. Korea is also more exposed to the US/China trade frictions.”
“TWD/KRW is holding up well above its 50,100 and 200-day moving averages, while the MACD (12,26) has moved above its signal line and the RSI is moving higher, but well off overbought levels.”
“Long TWD/KRW. Entry Level 41.0350 Target Level 42.3717 Stop-Loss 40.3754”
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