USD/IDR Technical Analysis: 50-month MA support could be tested

• USD/IDR's daily line chart is reporting a triangle breakdown
• The pair risks falling to 50-month MA for the first time since July 2012.

USD/IDR is looking south and appears on track to test key long-term support for the first time since July 2012

The daily chart is reporting a contracting triangle breakdown and is backed by a below-50 or bearish reading on the 14-day relative strength index (RSI). The monthly chart RSI is also hovering below 50.

As a result, the path of least resistance for the Indonesian Rupiah appears to be on the higher side and the USD/IDR pair could drop to the 50-month moving average support at 13,770. 

Supporting the bearish case is the broad-based weakness in the US dollar, especially against gold and risk currencies like the Australian dollar and New Zealand dollar. 

The pair is currently trading at 13,950.

Daily chart

Trend: Bearish

Technical levels