USD/KRW trades flat as South Korea enables 24-hour FX trading for won

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US dollar vs won slides 0.5% today

Highlights

South Korea is expanding 24-hour won trading and increasing overseas access to its currency settlement system to boost FX liquidity.
Correspondent bank settlement and widened Real-Time Funds Interface access are intended to ease global participation and attract capital inflows.
USD/KRW remains under firm bearish pressure, with technicals indicating likely downside within a ₩1,346 to ₩1,359 range in the next 2 to 3 days.

Won internationalization efforts reshape trading flows and access

South Korea has accelerated efforts to internationalize the won by enabling 24-hour foreign exchange trading and widening Real-Time Funds Interface (RFI) access for overseas investors, according to Biz Chosun. By permitting settlement in won via correspondent banks, these measures are designed to facilitate higher liquidity and easier access to the currency for global participants. The structural changes are likely to influence capital inflows and may gradually alter the trading patterns in USD/KRW, though the impact may not be immediate given the incremental rollout of such initiatives.

Sell bias and oversold signals amid technical resistance

On the hourly chart, USD/KRW is trading below the MA-20, MA-50, and MA-200 levels, with the Ichimoku Kijun set at ₩1,356 marking immediate resistance. Support is seen near ₩1,346, while the session closed with a negative gap and price finishing near the session low. MACD and ADX both continue to show a sell bias, and RSI, Stoch RSI, CCI, and Bull/Bear Power all point to oversold or seller-driven conditions. The Awesome Oscillator remains neutral, while no divergences are detected between momentum and oscillators.

Range-bound outlook persists as downside risks remain

Over the next two to three trading days, USD/KRW is expected to consolidate within a range of ₩1,346 to ₩1,359, reflecting typical volatility in the current environment. The probability of an upside breakout is judged to be very low, while scope exists for further downside if support at ₩1,346 fails. The baseline scenario remains range-bound price action, but a sustained move beyond immediate resistance would be needed to alter the prevailing view.

Anton Kharitonov, expert at Traders Union, believes recent structural reforms boosting FX market access should gradually enhance won liquidity, but short-term effects on USD/KRW are likely limited. He sees prevailing technical signals as clearly bearish, with multiple indicators showing persistent selling pressure. The pair sits below key moving averages and near session lows, supporting a defensive tactical stance. "Until ₩1,356 is convincingly reclaimed, I expect range trading with downside risk if ₩1,346 breaks."

Earlier, analysts noted that USD/KRW was consolidating as near-term technical signals conflicted with potentially overextended market conditions. The latest price action and ongoing FX market reforms add a structural dimension to the outlook, underscoring the importance of ₩1,346 as pivotal support for traders assessing near-term risk.

Source of Data: USD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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