- USD/IDR bounces off ten-week-old horizontal support, eyes 50-day SMA.
- Bank Indonesia (BI) is expected to stand pat, USD/IDR may keep corrective pullback.
- Key resistance lines stand tall to challenge bulls.
USD/IDR wavers around multi-day-old horizontal support, despite a recent bounce to 14,025, during early Thursday. In doing so, the quote also justifies the Indonesian rupee (IDR) traders’ cautious sentiment ahead of the BI rate decision.
Read: USD/IDR to advance nicely towards 13,800 by end-2021 – Standard Chartered
While the expected no change in Bank Indonesia’s monetary policy and challenges for China, amid Biden Presidency, could weigh on the IDR, which in turn can propel the quote towards a 50-day SMA level of 14,120.
However, the quote’s upside past-14,120 will be challenged first by the weekly resistance line and then a falling trend line from September 2020, respectively around 14,170 and 14,300.
On the contrary, a surprise announcement will have to break the stated immediate support near 14,000 to direct USD/IDR sellers toward an ascending support line from November, at 13,895 now.
In a case where the USD/IDR bears dominate past-13,895, the previous yearly low near 13,725 will be in focus.
USD/IDR daily chart
Trend: Pullback 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
GBP/USD remains heavy below 1.2300 amid UK bond market sell-off
GBP/USD consoldiates near 14-month lows below 1.2300 in European trading on Thursday. The pair bears the brunt of the UK bond market sell-off, with the 10-year Gilt yields at the highest since August 2008. Extended US Dollar strength and a bearish daily technical setup exaerbate its pain.
EUR/USD stays depressed near 1.0300 after Eurozone Retail Sales data
EUR/USD remains on the back foot at around 1.0300 in the European session on Thursday. German Industrial Production and Eurozone Retail Sales data for November fail to lift the Euro amid a sustained US Dollar demand. Fedspeak is next in focus.
Gold price moves back closer to multi-week top; modest USD strength might cap gains
Gold price turns positive for the third straight day and draws support from a combination of factors. Geopolitical risks, trade war fears and retreating US bond yields lend support to the XAU/USD pair.
Bitcoin falls below $94,000 as over $568 million outflows from ETFs
Bitcoin continues to edge down, trading below the $94,000 level on Thursday after falling more than 5% this week. Bitcoin US spot Exchange Traded Funds recorded an outflow of over $568 million on Wednesday, showing signs of decreasing demand.
Recent developments in the global economy
United States: Recent business surveys suggest that the clean election outcome has led companies that delayed investment and hiring due to election/regulatory uncertainty to start putting money to work.
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.