- USD/IDR slumps to fresh 4-month lows below 14K mark.
- Rounding top breakdown on daily chart points to more losses.
- Oversold RSI could trigger a shallow bounce ahead of US NFP.
USD/IDR has breached the critical 14000 level earlier in Friday’s Asian trading, still remains exposed to the further downside amid a bearish technical set up on the daily sticks.
The spot has charted a rounding top breakdown following a breach of the critical horizontal trendline support at 14,103. The bears had already got a boost after the price pierced the 200-DMA support at 14,361 on Thursday.
The spot is set to the test the 12K mark in the medium-term, as the path of least resistance remains to the downside amid lack of significant support levels.
However, a bounce in the near-term back towards the 200-DMA cannot be ruled, as the daily Relative Strength Index (RSI) trends in extremely oversold conditions, warranting a temporary pullback ahead of the US NFP data release.