US Dollar vs South Korean Won falls over 1% as South Korea launches 24-hour FX trading

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Us dollar vs won slides 1.06% today

Highlights

South Korea's launch of 24-hour onshore USD/KRW trading increased market access for foreign participants and eased investor entry rules.
Despite these reforms, the won remains under broader selling pressure as new infrastructure beds in.
USD/KRW is consolidating with mixed technical momentum; the pair is forecast to range between ₩1,496 and ₩1,529 over the next week.

Foreign inflows rise as access reforms meet persistent selling

South Korea launched its 24-hour onshore trading system for the US Dollar vs South Korean Won currency pair on July 6. The reform increased market accessibility for international participants, with the Seoul Foreign Exchange Market Operation Council providing a time-weighted average price hourly to support the new structure. The government also eased access requirements for foreign investors as part of this package, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, observes persistent weakness in USD/KRW following South Korea’s new 24-hour trading initiative. He notes the pair’s failure to reclaim key moving averages, with technical signals divided and momentum fragile. The oversold Stochastic RSI and low volatility suggest bearish pressure remains unresolved. Kharitonov remains skeptical of a rapid recovery given prevailing sentiment and technical headwinds. "Until USD/KRW decisively clears ₩1,529 or builds sustained buying interest, I see limited upside and ongoing downside risk," he says.

Viktoras Karapetjanc, expert at Traders Union, highlights the structural shift enabled by South Korea’s 24-hour trading and improved market access. He views the increased foreign participation as a foundation for potential upward moves in USD/KRW. Karapetjanc notes that despite temporary weakness, the pair’s position above its 200-day moving average keeps the bullish structure intact. He expects the new trading system to encourage further inflows and trading setups. "With reforms supporting accessibility, I see resilience in the market and anticipate renewed buying above ₩1,529," he says.

Short-term downside persists as momentum signals diverge

USD/KRW trades below its 20-day (₩1,532) and 50-day (₩1,519) moving averages, indicating persistent downside momentum in the short and medium term. The pair stays above the 200-day moving average (₩1,481), which preserves a positive long-term technical structure. Current near-term resistance is seen at ₩1,512, with support at ₩1,496. The Ichimoku Kijun and the 20-day moving average act as distant resistance, confirming trend alignment but not limiting today’s price moves. Momentum signals are mixed: the MACD shows strong buy momentum, while the ADX is neutral, and the RSI (49.59) leans slightly negative. The Stochastic RSI is deeply oversold at 3.47, and the CCI is neutral. Bull/Bear Power suggests intraday buyers are present but limited by overbought signals. Intraday, the pair opened with a downside gap of about 0.4%, and last price was near today’s low as volatility reached 1.03%. The intraday tone is pressured as short-term indicators diverge, with the price decline matching weak RSI and Stochastic RSI but conflicting with bullish MACD and BBP readings.

Earlier, analysts noted that downside risks for USD/KRW remained elevated amid persistent technical weakness and mixed signals despite structural market reforms. The current analysis reinforces this view, highlighting that while short- and medium-term pressure persists, traders should closely monitor a potential break below ₩1,496 as it may open the door to increased volatility and further downside.

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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