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USD/IDR has bounced up sharply from the 5-day moving average (MA), reinforcing the bullish view put forward by that ascending technical line.

Further, the pair seems to have acceptance above 14,300, a level which proved a tough nut to crack in four out of last six trading days.

The 14-day relative strength index (RSI) is also reporting bullish conditions with an above-50 print. In fact, the index is currently at the highest level since October.

As a result, the pair looks set to test the resistance at 14,416 (March 8 high). A move higher, however, may remain elusive if Indonesia’s first-quarter growth rate beats the expected quarter-on-quarter contraction of 0.4% by a big margin. The data is due at 04:00 GMT today.

Daily chart

Trend: Bullish