USD/IDR Price Analysis: Indonesian Rupiah drops 1%

USD/IDR sees oversold bounce but remains below the multi-month falling trendline.
A breakout above the trendline hurdle would confirm a bullish reversal.

Omkar Godbole FXStreet Contributor

The Indonesian Rupiah is currently trading at 14,155 per US dollar, representing a 1% decline on the day. The currency hit a low of 14,244 per US dollar a few minutes before press time.

The uptick in the USD/IDR pair could be associated with the oversold reading on the 14-day relative strength index. The MACD histogram, too, is about to cross above zero. That would confirm a bullish reversal.

However, a more credible signal of a trend reversal would be the pair's breach of the trendline falling from April 3 and June 2 highs. Currently, that trendline resistance is located at 14,250. A daily close above that level would expose the resistance at 14,732 (June 1 high).

The bears, however, could make a strong comeback if the descending trendline proves a tough nut to crack. On the downside, key support is seen at 13,952 (June 8 low), which, if breached, would expose support at 13,620 (Feb. 6 low).

Daily chart

Trend: Oversold bounce

Technical levels

1. R3 14169.6667
2. R2 14137.3333
3. R1 14114.6667
PP 14082.3333
1. S1 14059.6667
2. S2 14027.3333
3. S3 14004.6667

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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