- Indonesia’s Rupiah is looking north, as USD/IDR’s daily chart shows range breakdown.
- A crucial moving average support could soon come into play.
The path of least resistance for the Indonesian Rupiah (IDR) is to the higher side.
The USD/IDR pair formed an inverted bearish hammer on Thursday and closed below the preceding day’s low of 16,027, confirming a contracting triangle breakdown or range breakdown.
USD/IDR had charted back-to-back inside day candlestick patterns on Tuesday and Wednesday, signaling contraction of the trading range or indecision in the market place.
Thursday’s range breakdown indicates the period of indecision has ended with victory for the USD/IDR bears.
With sellers in control, the pair risks falling to the ascending 10-day average, currently located at 15,834. At press time, the spot is trading at largely unchanged on the day at 16,000, having faced rejection at 16,267 early Friday.
A close above Thursday’s high of 16,587 is needed to invalidate the bearish setup.