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USD/KRW maintains a large top and continues to trend strongly lower. Economists at Credit Suisse believe that a test of the 1054 2018 low is on the cards.

Key quotes

“USD/KRW remains under pressure for further downside, in line with the large topping structure that is in place.”

“Although the market has now shifted into a short-term phase of consolidation, we remain biased lower and see pivotal support initially at the 2019 and July 2018 lows as well as the 78.6% retracement at 1109/05, where we would expect to see another temporary pause at first.”

“The size of the potential top suggests a test of the 2018 low at 1054 is very possible.”