USD/IDR Price Analysis: Indonesian Rupiah drops 0.40%
|- USD/IDR's 4-hour chart shows a falling wedge breakout.
- The pair is flashing green at press time and could rise further in the short-term.
Indonesian Rupiah is currently trading near 14,940 per US dollar, representing a 0.40% decline on the day. The local unit may remain under pressure in the near-term, according to technical charts.
USD/IDR’s pullback from record highs above 16,700 to recent lows below 15,000 had taken the shape of a falling wedge.
A falling wedge comprises converging trendlines connecting lower highs and lower lows. The converging nature of trendlines represents seller exhaustion. Hence, a breakout is considered a confirmation of bearish-to-bullish trend change.
The pair’s 0.40% rise seen today has confirmed an upside break of the falling wedge. Hence, the path of least resistance now looks to be on the higher side.
The immediate resistance is seen at 15,125, which, if violated, would open the doors to 16,000. Note that the falling wedge breakout is often followed by a rally all the way back to the apex of the wedge. However, the breakout would be invalidated if the pair drops below 14,000.
4-hour chart
Trend: Bullish
Technical levels
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