US Dollar vs Korean Won stays under pressure as short-term sellers dominate following trading reform

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Us dollar vs korean won slides 0.82%

Highlights

South Korea launched 24-hour onshore USD/KRW trading to expand global accessibility and deepen liquidity for the won.
Reforms also eased foreign investor requirements, resulting in increased activity and price adjustments during initial sessions.
USD/KRW trades below short-term averages with sellers dominating; expected to range between ₩1,479 and ₩1,525 over the next week.

Liquidity surges as 24-hour won access lifts global activity

South Korea launched 24-hour onshore trading for the Korean won against the US dollar, making the USD/KRW pair available continuously across global time zones. This move was intended to improve currency accessibility and boost international liquidity. The reform also included easing access requirements for foreign investors, and early sessions saw heightened activity with USD/KRW adjusting to broader participation.

Anton Kharitonov, expert at Traders Union, believes that the introduction of 24-hour onshore trading has pressured USD/KRW lower but also magnified short-term volatility. He notes that the pair is trading beneath its 20-day and 50-day moving averages, underscoring persistent selling and waning sentiment. Kharitonov points out that despite regulatory improvements, technical signals like weak ADX, negative Bull/Bear Power, and oversold readings expose ongoing vulnerability. The analyst cautions that the market’s heavy tone and dominance by sellers suggest further downside risk if support at ₩1,498 fails. "Unless buyers regain control above ₩1,510, I see the risk skewed toward continued softness and a possible retest of ₩1,479," he says.

Viktoras Karapetjanc, expert at Traders Union, sees strong opportunity created by deepening reforms and the official launch of around-the-clock trading. He states that improved access for foreign participants can enhance KRW’s global standing and magnify cross-border liquidity. Karapetjanc highlights that even with current consolidation, the long-term bullish structure remains intact above the 200-day average. He emphasizes that a sustained move above ₩1,510 could unlock a renewed push towards ₩1,525. "The market offers multiple setups for bullish continuation as regulatory momentum and technical resilience align," he asserts.

Jainam Mehta, market strategist, notes that USD/KRW is consolidating between key support and resistance near ₩1,498 and ₩1,510. He observes mixed momentum signals and points out that price action remains indecisive despite increased trading hours. Mehta suggests that a potential breakout above ₩1,510 could offer a tactical entry, while a drop below ₩1,498 may catalyze a bearish move. "A contrarian setup could emerge if oversold readings reverse near the lower boundary," he adds.

Short-term pressure persists as mixed technicals cap upside

USD/KRW is trading below its 20-day (₩1,533) and 50-day (₩1,520) moving averages, but remains above the 200-day (₩1,481) level. This structure shows ongoing short- and medium-term pressure from sellers, though the long-term uptrend is intact with the 50-day average above the 200-day. Resistance is seen at ₩1,510 and near-term support at ₩1,498. Momentum signals are mixed: the MACD stands at 1.77 with a "Strong Buy" bias, but the ADX at 16.75 indicates a weak trend. The RSI is soft at 42.55 with a "Sell" signal, and both the Stochastic RSI and CCI reflect oversold conditions. Bull/Bear Power is negative at -3.69, confirming sellers dominate intraday momentum and forecast an oversold state. The pair opened steady, declined ₩12.34 or 0.82%, and remains near the session low with intraday volatility at 1.67%. Intraday tone is heavy, with sellers controlling price action and limited upside attempts.

Earlier, analysts noted that the expansion of 24-hour onshore trading for the Korean won was intensifying short- and medium-term bearish momentum in USD/KRW. The latest data reinforces this view, signaling that traders should watch for a break below ₩1,498 as a potential trigger for renewed downside toward ₩1,479.

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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