- USD/IDR is trading around its 5-day average at press time.
- Last Friday’s bearish candle remains valid and suggests scope for deeper declines.
Indonesia’s Rupiah (IDR) is seeing little action in Asia as indicated by USD/IDR’s sideways action near the 5-day moving average at 15,560.
The bias for USD/IDR remains bearish with the pair still trading within the range of the big red marubozu candle created on April 17. A red marubozu comprises of big body and little or no wicks, a sign the sellers remained in control from the opening bell to the closing bell. It is widely considered a sign of strong bearish sentiment.
The USD/IDR pair remains on the hunt for a drop to the ascending 50-day average, currently at 15,181.
A daily close above 15,784 is needed to invalidate the bearish marubozu candle and put the bulls back into the driver’s seat.
Daily chart
Trend: Bearish
Technical levels
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