USD/IDR Price Analysis: Indonesian Rupiah has recovered 50% of 2020 drop
|- IDR has clawed back over 50% of the drop seen earlier this year.
- USD/IDR charts suggest scope for further IDR strength in the near-term.
The Indonesian Rupiah is trading in a sideways manner around 15,100 per US dollar at press time, having hit a high of 15,069 at press time.
The local unit has erased over 50% of the decline from 13,560 to 16,738 seen during the 10-weeks to April 2.
The Rupiah may rise further, as the USD/IDR's daily chart shows lower highs and lower lows setup, descending 5- and 10-day averages and a below-50 reading on the relative strength index (RSI).
That said, the RSI is reporting oversold conditions with a below-50 reading on the 4-hour chart. As a result, a minor bounce could be seen before a potential deeper drop, as called by the daily chart.
A close above Monday's high of 15,154 would open the doors to a re-test of the ascending 50-day average at 15,408. On the lower side, support is seen directly at 14,774, which is the 61.8% Fibonacci retracement of the 2020 rally.
Daily chart
USD/IDR trend: Bearish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.