- Oversold RSI and expectations of the BI rate cut pulled the USD/IDR pair up.
- 14,075/80, the eight-week-old descending trend-line and 100-day EMA also stand tall to question bulls.
Although growing market expectations that the Bank Indonesia (BI) will announce a cut to its headline BI rate in today’s monetary policy meeting recently triggered the USD/IDR pair’s pullback amid oversold RSI, the quote is yet to clear 10-day EMA while making the rounds to 13,980 during early Thursday.
Not only 10-day exponential moving average (EMA) surrounding 14,023/25, but multiple lows between late-June and July 09 surrounding 14,075/80 can also limit the pair’s immediate upside.
In a case prices rally past-14,080, a downward sloping trend-line since late-May, at 14,172, followed by 100-day EMA level of 14,213, may gain bulls’ attention.
Should sellers refrain from respecting oversold levels of 14-day relative strength index (RSI), multiple supports close to 13,950/40 and recent bottom around 13,890 can entertain them ahead of pushing towards February month low of 13,858.
USD/IDR technical analysis
Trend: Pullback expected
- R3 14074.17
- R2 14030.83
- R1 13991.67
- PP 13948.33
- S1 13909.17
- S2 13865.83
- S3 13826.67
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