- USD/IDR’s daily line chart is reporting a triangle breakdown
- The pair risks falling to 50-month MA for the first time since July 2012.
USD/IDR is looking south and appears on track to test key long-term support for the first time since July 2012
The daily chart is reporting a contracting triangle breakdown and is backed by a below-50 or bearish reading on the 14-day relative strength index (RSI). The monthly chart RSI is also hovering below 50.
As a result, the path of least resistance for the Indonesian Rupiah appears to be on the higher side and the USD/IDR pair could drop to the 50-month moving average support at 13,770.
Supporting the bearish case is the broad-based weakness in the US dollar, especially against gold and risk currencies like the Australian dollar and New Zealand dollar.
The pair is currently trading at 13,950.
Daily chart
Trend: Bearish
Technical levels