USD/TWD: Uptrend is likely to extend on a break past 31.50/31.58 – SocGen

The TWD is languishing ahead of the presidential election on Saturday. Economists at Société Générale analyze USD/TWD outlook.

Positioning for Taiwan presidential election may spur safe haven-demand for Bonds, Gold, Swissie

Safe-haven demand ahead of the presidential election in Taiwan on Saturday could see investors buying government debt, the Swiss Franc and Gold.

USD/TWD has experienced a quick bounce after testing the trend line drawn since 2022 near 30.48. Cross above the upper band of a pattern resembling falling wedge denotes possibility of further upside. 

Recent gap at 30.80 is near term support. Defence of this level can lead to continuation in up move towards 50-DMA and recent pivot high at 31.50/31.58; this is an important hurdle. If the pair overcomes this zone, the uptrend is likely to extend.