- USD/IDR created a bearish candlestick pattern on Tuesday.
- Indonesia’s Rupiah may appreciate to 14,000 per US dollar in the short-term.
Indonesian Rupiah may chalk out gains on Wednesday, USD/IDR’s daily chart indicates.
The pair created a “Gravestone Doji” candle on Tuesday, which comprises only upper shadow – a sign of rejection at higher prices. This is because the open, low, and closing prices are all near each other.
The Gravestone Doji is considered a bearish reversal candle. In this case, it indicates that the bounce from the June 5 low of 13,935 has ended and the bears have regained control.
The pair risks falling back to immediate support at 14,000. That level is currently housing the trendline falling from April and June highs. Supporting the bearish case is the below-50 reading on the 14-day relative strength index.
A close above Tuesday’s high of 14,261 is needed to abort the bearish outlook and shift risk in favor of a rally to 14,800.
Daily chart
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Trend: Bearish
Technical levels
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