USDIDR Price Analysis: Approaches key resistance around $15,700 ahead of Bank Indonesia Rate Decision
- USDIDR prints four-day uptrend, seesaws around intraday high of late.
- Bank Indonesia is likely to increase benchmark rate by 50 bps.
- Upside break of fortnight-old resistance line could refresh multi-month high.
- 21-DMA, ascending trend line from late September restrict short-term downside.
USDIDR grinds higher as it braces for the Bank Indonesia (BI) Rate announcement during early Thursday, poking one-week high near $15,700 during a four-day uptrend by the press time.
The BI is ready to announce this year’s fourth rate hike to tame the inflation fears in the Asian economy. That said, the Indonesian central bank is likely to lift the rate by 50 bps to 5.25%, a three-year high during today’s monetary policy meeting.
As a result, a downward-sloping resistance line from November 04, around $15,720 by the press time, gains major attention as a successful break of which could quickly refresh the multi-month high marked earlier in November at around $15,745.
In that case, the $16,000 threshold may entertain USDIDR bulls before directing them to the yearly 2020 peak surrounding $16,740.
Alternatively, pullback moves remain elusive unless breaking the 21-DMA support near $15,615.
Even so, a seven-week-old ascending support line could challenge the USDIDR bears near $15,425.
It should be noted that an ascending trend line from August 2022, close to $15,160 at the latest, appears the last defense of the USDIDR bulls.
USDIDR: Daily chart
Trend: Further upside expected