OCBC’s Christopher Wong observes that USD/KRW’s earlier decline has stalled, with bearish momentum fading and RSI recovering from oversold territory. He sees scope for a rebound toward 1492, with support at 1460/64, before a positive sentiment turn could favour a proxy sell-rally in USD/KRW, though timing depends on how long it takes for US or Iran to “blink” in ceasefire talks.

Short-term rebound before renewed downside

"So, this is a state where 2-way trading is very much alive. On a FX technical point of view, there were short term bullish signals for a few pairs, including USD/KRW, USD/SGD, USD/TWD."

"For USD/KRW, bearish momentum shows signs of fading while RSI rose from oversold conditions. Support at 1460/64 levels"

"Near-term risk may fade, but a breakthrough could spark a risk‑on surge, favouring a proxy sell rally in USD/KRW."

"A positive turnaround in sentiments (when it happens) should be supportive of proxy sell rally trade in USDKRW, but the risk is how long it takes for US or Iran to blink."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)