USD/IDR Technical Analysis: Probing falling channel resistance

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USD/IDR is trading in the green for the fifth consecutive day and is currently flirting with the upper edge of a bearish channel created over the last six weeks. 

Daily chart

  • As seen above, the pair is pushing against the channel hurdle of 14,145. 
  • A close higher would confirm a violation of the bearish lower highs and lower lows pattern (falling channel) and open the doors to 4,251 (March 29 high). 
  • The 14-day relative strength index is already flashing a falling channel breakout. So, USD/IDR looks set to find acceptance above the channel resistance at 14,145. 
  • A strong rejection at the channel hurdle, if followed by a quick drop below 14,089 (March 21 low), would weaken the bull case.

Trend: Bullish

Pivot points

 

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