SOUTH KOREA: Country Wrap: Korea Pushes for 24HR FX Trading

• RES 4: 107.300 Round number resistance  
• RES 3: 107.245 High Jul 24
• RES 2: 107.153 50-day EMA
• RES 1: 107.100 High Aug 21 
• PRICE: 107.070 @ 05:43 BST Aug 27
• SUP 1: 106.970 Low Aug 25
• SUP 2: 107.964 1.618 proj of the Jul 7 - 11 - 22 price swing 
• SUP 3: 106.928 1.764 proj of the Jul 7 - 11 - 22 price swing
• SUP 4: 106.870 2.000 proj of the Jul 7 - 11 - 22 price swing

The trend outlook in Schatz futures remains bearish and gains are - for now - considered corrective. The contract traded to a fresh short-term cycle low yesterday and 106.985, the Aug 15 low, has been pierced. A clear breach of this level would resume the downtrend and mark an extension of the price sequence of lower lows and lower highs. This would open 106.964, a Fibonacci projection. Initial resistance is 107.078, the 20-day EMA.

• RES 4: 1.3753 High High Jul 2   
• RES 3: 1.3681 High Jul 4 
• RES 2: 1.3636 76.4% retracement of the Jul 1 - Aug1 downleg
• RES 1: 1.3544/3595 High Aug 22 / 14
• PRICE: 1.3450 @ 06:25 BST Aug 27
• SUP 1: 1.3391 Low Aug 22  
• SUP 2: 1.3315 61.8% retracement of the Aug 1 - 14 bull leg
• SUP 3: 1.3249 76.4% retracement of the Aug 1 - 14 bull leg 
• SUP 4: 1.3142 Low Aug 1 and a key support      

A rally on Aug 22 in GBPUSD continues to signal the end of the recent corrective phase - last Friday’s reversal pattern is a bullish engulfing candle. An extension higher would open the short-term bull trigger at 1.3595, the Aug 14 high. Clearance of this level would signal scope for a climb towards 1.3636, the 76.4% retracement of the bear leg between Jul 1 and Aug 1. Key short-term support has been defined at 1.3391, the Aug 22 low.