- The USD / IDR 4-hour chart shows a falling corner break.
- The pair is flashing green at press time and may further increase in the short term.
Indonesian rupiah is currently trading around 14,940 by US dollars, which represents a decrease of 0.40% over the day. The local unit could remain under pressure in the short term, according to the technical sheets.
The decline in the USD / IDR, which went from record highs over 16,700 to recent lows below 15,000, took the form of a falling wedge.
A bearish wedge includes converging trend lines connecting the lows and lows. The converging nature of the trend lines represents the seller’s exhaustion. Therefore, a breakout is taken as confirmation of a change from bearish to bullish trend.
The 0.40% rise in the pair seen today confirmed an upside break in the bearish corner. Therefore, the path at least resistance now appears to be on the upper side.
Immediate resistance is seen at 15,125, which, if violated, would open the doors to 16,000. Note that the breaking of the falling corner is often followed by rallying to the top of the corner. However, the breakout will be invalidated if the pair drops below 14,000.
4 hour chart