• South Korean won slumps against the dollar, hits weakest since mid-June 2012 
  • USD/KRW breaks above the 2013 (1163.5) high to levels not seen since 2012, currently trading at 1164.20 after a gap-up open on the day
  • Continued global strength of the U.S. currency and poor S.Korea Q2 GDP growth wich was the worst in over 6 yrs adding to further pressure on KRW
  • KRW weakness is likely to continue,BOK unlikely to step in given soft Q2 GDP
  • Topside momentum is gathering pace, May 2012 high of 1186.6 may be the next target on a medium term horizon
  • Strong support is seen at 1148, while little resistance is seen till May 2012 high of 1186.6 

Recommendation: Buy on dips around 1160, SL: 1140, TP: 1186 

The material has been provided by InstaForex Company – www.instaforex.com