USD/IDR Price Analysis: Rupiah eases from $14,330 support, eyes on Bank Indonesia Rate

USD/IDR snaps three-day downtrend, stays pressured around weekly low.
BI is expected to keep monetary policy, benchmark rate unchanged.
Convergence of 200-DMA, seven-week-old support line restricts short-term downside.
MACD teases bears, clear trading above $14,450 becomes necessary for bull’s conviction.

Anil Panchal FXStreet

USD/IDR struggles to extend previous three-day downtrend around the weekly bottom as the pair traders await monetary policy decision from the Bank Indonesia (BI) during early Thursday morning in Europe. That said, BI is widely anticipated to keep the benchmark rate unchanged at 3.5%.

In addition to the BI concerns, the market’s anxiety ahead of the US Consumer Price Index (CPI) data for January, expected 7.3% YoY versus 7.0% prior, also challenges the USD/IDR pair’s latest moves.

Read: US Treasury yields dwindle, S&P 500 Futures ignore Wall Street gains amid inflation anxiety

Technically, a convergence of the 200-DMA and an upward sloping trend line from late December restrict the immediate downside of USD/IDR around $14,330.

However, the MACD teases bears and can result in the pair’s further declines towards the initial 2022 lows near $14,270.

It should be observed that the USD/IDR seller’s dominance past $14,270 could highlight the December 2021 bottom of $14,140.

Alternatively, recovery moves may initially aim for the 61.8% Fibonacci retracement (Fibo.) of December 2021 downside, around $14,385.

Though, USD/IDR bulls remain cautious until witnessing a decisive break above the $14,450 hurdle.

To sum up, bears keep reins ahead of the key catalysts, namely Bank Indonesia Rate and US inflation readings.

USD/IDR: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	14346.3
Today Daily Change	-2.4000
Today Daily Change %	-0.02%
Today daily open	14348.7

Trends
Daily SMA20	14356.4325
Daily SMA50	14333.354
Daily SMA100	14291.4975
Daily SMA200	14331.277

Levels
Previous Daily High	14393
Previous Daily Low	14331.45
Previous Weekly High	14441.95
Previous Weekly Low	14296.45
Previous Monthly High	14450.8
Previous Monthly Low	14185.25
Daily Fibonacci 38.2%	14354.9621
Daily Fibonacci 61.8%	14369.4879
Daily Pivot Point S1	14322.4333
Daily Pivot Point S2	14296.1667
Daily Pivot Point S3	14260.8833
Daily Pivot Point R1	14383.9833
Daily Pivot Point R2	14419.2667
Daily Pivot Point R3	14445.5333

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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