- USD/IDR snaps three-day downtrend, stays pressured around weekly low.
- BI is expected to keep monetary policy, benchmark rate unchanged.
- Convergence of 200-DMA, seven-week-old support line restricts short-term downside.
- MACD teases bears, clear trading above $14,450 becomes necessary for bull’s conviction.
USD/IDR struggles to extend previous three-day downtrend around the weekly bottom as the pair traders await monetary policy decision from the Bank Indonesia (BI) during early Thursday morning in Europe. That said, BI is widely anticipated to keep the benchmark rate unchanged at 3.5%.
In addition to the BI concerns, the market’s anxiety ahead of the US Consumer Price Index (CPI) data for January, expected 7.3% YoY versus 7.0% prior, also challenges the USD/IDR pair’s latest moves.
Read: US Treasury yields dwindle, S&P 500 Futures ignore Wall Street gains amid inflation anxiety
Technically, a convergence of the 200-DMA and an upward sloping trend line from late December restrict the immediate downside of USD/IDR around $14,330.
However, the MACD teases bears and can result in the pair’s further declines towards the initial 2022 lows near $14,270.
It should be observed that the USD/IDR seller’s dominance past $14,270 could highlight the December 2021 bottom of $14,140.
Alternatively, recovery moves may initially aim for the 61.8% Fibonacci retracement (Fibo.) of December 2021 downside, around $14,385.
Though, USD/IDR bulls remain cautious until witnessing a decisive break above the $14,450 hurdle.
To sum up, bears keep reins ahead of the key catalysts, namely Bank Indonesia Rate and US inflation readings.
USD/IDR: Daily chart
Trend: Further weakness expected
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steady below 0.6550 after PBOC's status quo
AUD/USD is trading in a tight range below 0.6550 in Asian trading on Wednesday. The pair lacks bullish conviction after the PBOC left the Lona Prime Rates unchanged. Escalating Russia-Ukraine geopolitical tensions keep the Aussie on the edge ahead of Fedspeak.
USD/JPY pares gains below 155.00 amid risk-off mood
USD/JPY is paring back gains below 155.00 in Wednesday's Asian session. A broadly softer US Dollar, a risk-off market mood and looming Japanese intervention risks limit the pair's upside. Mounting Russia-Ukraine tensions weigh on risk appetite, lending support to the safe-haven Japanese Yen.
Gold stays firm amid geopolitical concerns, nears $2,650
Gold price holds comfortably above $2,600, nearing $2,650 early Wednesday. Escalating geopolitical tensions on latest developments surrounding the Russia-Ukraine conflict and the pullback seen in US yields help Gold price hold its ground.
XRP on the verge of a rally to $1.96 as investors maintain bullish sentiment
Ripple's XRP trades at $1.11 on Wednesday, maintaining its position as the best-performing cryptocurrency in the top 20 cryptos by market capitalization, with over a 50% rise in the past week.
How could Trump’s Treasury Secretary selection influence Bitcoin?
Bitcoin remained upbeat above $91,000 on Tuesday, with Trump’s cabinet appointments in focus and after MicroStrategy purchases being more tokens.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.