- IDR has clawed back over 50% of the drop seen earlier this year.
- USD/IDR charts suggest scope for further IDR strength in the near-term.
The Indonesian Rupiah is trading in a sideways manner around 15,100 per US dollar at press time, having hit a high of 15,069 at press time.
The local unit has erased over 50% of the decline from 13,560 to 16,738 seen during the 10-weeks to April 2.
The Rupiah may rise further, as the USD/IDR’s daily chart shows lower highs and lower lows setup, descending 5- and 10-day averages and a below-5 reading on the relative strength index (RSI).
That said, the RSI is reporting oversold conditions with a below-50 reading on the 4-hour chart. As a result, a minor bounce could be seen before a potential deeper drop, as called by the daily chart.
A close above Monday’s high of 15,154 would open the doors to a re-test of the ascending 50-day average at 15,408. On the lower side, support is seen directly at 14,774, which is the 61.8% Fibonacci retracement of the 2020 rally.
USD/IDR trend: Bearish