USD/IDR Price Analysis: Indicators suggest downside momentum may be ebbing
- USD/IDR's daily chart indicators are reporting bullish developments.
- A corrective bounce to resistance near 14,700 could be in the offing.
USD/IDR's downtrend from the May 2019 high of 14,525 may be running out of steam, according to key technical indicators.
The 14-day relative strength index has charted higher lows over the last two weeks, contradicting lower lows on the price chart. The bullish divergence indicates a price bounce could be in the offing.
The daily chart MACD histogram is also trending north (albeit below zero) since Jan. 17, warning an impending bullish reversal.
A move above 13,714 (Jan. 15 high) would imply a temporary bottom has been made and could yield a rally to 13,910 (September low). The odds of a corrective bounce would weaken if prices find acceptance under 13,560 (June 24 low).