USD/TWD: Falling wedge hints at reversal risk – OCBC
OCBC strategists Sim Moh Siong and Christopher Wong highlight that USD/TWD has been grinding lower, supported by strong Taiwan equities, foreign inflows and robust tech exports. They note Taiwan Dollar (TWD) is re-coupling with the technology cycle and remains fundamentally supported. However, USD/TWD shows a falling wedge pattern with Relative Strength Index (RSI) near oversold, suggesting scope for a bullish reversal from support around 31.40–31.50.
Tech cycle supports TWD, chart stretched
"USD/TWD continued to trade lower over the past few sessions."
"With foreign inflows returning to Taiwan equities and tech exports staying strong, TWD appears to be trading more closely with the technology cycle again."
"On net, TWD remains supported by both portfolio inflows and external trade fundamentals."
"Bearish momentum on daily chart intact while RSI is near oversold conditions."
"Price action continues to show falling wedge pattern – typically associated with bullish reversal."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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