USD/IDR Price Analysis: Early gains erased, risks skewed to the downside
|- USD/IDR's daily chart indicators are signaling buyer exhaustion.
- Indonesia's Rupiah has erased early losses and could rise further to 15,800 per US dollar.
The bid tone around Indonesia's Rupiah (IDR) strengthened a few minutes before press time, pushing USD/IDR lower from the session high of 16,500 to 16,120.
The pair has erased early gains and could drop further, as signs of buyer exhaustion have emerged on the daily chart.
The pair created a bearish inside day candle on Tuesday, which occurs when the pair trades well within the range of the preceding day and ends the day on a negative note. While it is widely considered a sign of indecision, the candlestick pattern has appeared following a notable rally in USD/IDR's case and is reflective of bull fatigue.
Tuesday's bearish inside day candle has also validated overbought conditions signaled by the 14-day relative strength index and shifted risk in favor of a drop to 15,800.
On the higher side, a close above Tuesday's high of 16,500 is needed to put the bulls back into the driver's seat.
Daily chart
Trend: Bearish
Technical levels
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