- USD/IDR's daily chart shows an impending bearish divergence of the RSI.
- Confirmation of divergence would imply bull fatigue and yield pullback.
USD/IDR pair rose to 17,680 on Wednesday, marking a fresh record low for Indonesia's Rupiah. The previous record low of 17,154 was registered on March 23.
The drop to new lifetime lows, however, was not confirmed by the USD/IDR's 14-day relative strength index.
While the pair crossed above the March 23 high of 17,154, setting a higher high on the daily chart, the RSI did not follow suit.
The impending bearish divergence suggests a weakening of the upward momentum. The bearish divergence would be confirmed if the spot ends Thursday on a negative note. That would open the doors for a recovery in Indonesia's Rupiah (pullback in USD/IDR).
At press time, the pair is trading largely unchanged on the day near 16,853.
Daily chart
-637213955282111335.png)
Trend: Bull fatigue
Technical levels
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