Indonesian rupiah rallies in sync with EM currencies
Fundamental Forex Analysis

Indonesian rupiah eyes extra gains amid rounding top breakdown

  • 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.

USD/IDR: Daily chart

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