USD/IDR Price News: Indonesian Rupiah's sideways churn suggests bullish exhaustion
- USD/IDR's daily chart shows bullish exhaustion in IDR.
- The MACD histogram is eyeing a bullish crossover above zero.
- The sideways churn could pave the way for a notable move to the higher side.
The Indonesian Rupiah's uptrend looks to have run out of steam and the currency could come under pressure in the short-term, pushing the USD/IDR pair higher.
The local unit is currently trading at 14,780 per US dollar, representing an 11.7% decline from the low of 16,738 registered on April 2. The currency has been trading in a sideways manner since May 21.
To put it another way, the USD/IDR pair's downtrend is now nearly two months old. Further declines, however, look unlikely, as the pair has charted consecutive doji candles on the daily chart. While the doji represents indecision, in this case, the candle has appeared following a notable sell-off and indices exhaustion of downtrend (or uptrend in IDR).
Further, the MACD histogram is about to cross above zero. That would confirm a bearish-to-bullish trend change. The indicator charted a bullish divergence in the first week of May.
IDR, therefore, could soon come under pressure. USD/IDR faces resistance at 14,844 (100-hour simple moving average). On the downside, 14,700 is the level to beat for the sellers.
Daily chart
Trend: Bullish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
