USD/IDR: Further weakness in the pipeline – UOB

Pablo Piovano FXStreet

There seems to be room for extra decline in USD/IDR in the short-term horizon, notes Markets Strategist Quek Ser Leang at UOB.

Key Quotes

We highlighted last Monday (30 Oct 2023, spot at 15,920) that “the rally over the past few weeks is severely overbought.” We also highlighted that “further USD/IDR strength is not ruled out, but in view of the overbought conditions, the pace of any advance is likely to be slower, and USD/IDR may find the major resistance at 16,000 difficult to break.” Instead of strengthening further, USD/IDR turned around and plunged to a low of 15,720.

In Asian trade today, USD/IDR weakened further. While severely oversold, the weakness in USD/IDR could extend to 15,450, possibly 15,360. In order to keep the momentum going, USD/IDR must stay below 15,720.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.