USD/IDR Price Analysis: Indonesia’s Rupiah’s record low is not confirmed by the daily RSI

• 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

Trend: Bull fatigue

Technical levels