- USD/IDR’s daily chart is reporting a bearish divergence of a key indicator.
- The pair risks falling to 16,000 in the short-term.
Indonesia’s Rupiah (IDR) is better bid at press time and could continue to gain ground against the US dollar in the short-term, according to technical charts.
The USD/IDR currency pair is currently trading in the red at 16,377, having hit a high of 16,645 early Tuesday.
The pair could slide further toward 16,000, as the 14-day relative strength index is reporting a bearish divergence, which occurs when the indicator prints lower highs as opposed to higher highs on the price chart.
The bearish divergence occurred on April 1, when the pair hit a record high of 17,670 and the indicator printed a lower high and was confirmed on Monday with the indicator’s drop below 70.
The RSI has also breached the ascending trendline, indicating an end of the uptrend from January lows near 13,200.
Daily chart
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Trend: Bearish
Technical levels
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