USD/IDR risks a deeper pullback below 14,420 – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research noted USD/IDR could slip back to the 14,380 level if 14,420 is cleared.

Key Quotes

“Last Monday, we highlighted that USD/IDR ‘is likely to trade between the two major levels of 14,450 and 14,565’.”

“We added, ‘looking ahead, the downside appears to be more at risk but USD/IDR has to close below the 55-day exponential moving average before a sustained decline can be expected’”.

“While USD/IDR traded sideways for most of last week, it dropped briefly to 14,420 on Friday (30 Jul) before rebounding. Downward momentum is beginning to build but USD/IDR has to close below 14,420 before a move to 14,380 can be expected. At this stage, the prospect for USD/IDR to close below 14,420 is not high but it would remain intact unless USD/IDR can move above 14,500.”