- USD/IDR benefits from an upside break to monthly falling trend line.
- 200-bar SMA lures the bulls amid upbeat MACD, sellers have multiple reasons to refrain from entries.
USD/IDR refreshes intraday top to 14,218, currently up 0.80% around 14,208, while heading into Thursday’s European session. In doing so, the pair extends the upside break of a descending trend line from October 30 towards confronting a short-term resistance line from November 09 amid bullish MACD.
Read: Indonesia: BI to remain on hold this week – UOB
Not only the mixed technical signals but the pair traders’ cautious mood ahead of the Bank Indonesia’s (BI) rate decision, expected to keep the 4.0% mark, also challenge the recent moves.
As a result, a clear break above 14,215 becomes necessary, backed by downbeat comments from the BI, to favor the USD/IDR buyers targeting a 200-bar SMA level of 14,526.
Alternatively, a surprise rate move can fetch the quote back to the previous resistance line, now support, around 14,025, before highlighting the 14,000 threshold for the USD/IDR bears.
In a case where the pair remains depressed below the 14,000 round-figures, the monthly low near 13,725 will regain the market’s attention.
USD/IDR four-hour chart
Trend: Further upside expected
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