USDIDR has a four-day rise and recently oscillated around an intraday high. The benchmark rate will likely rise by 50 basis points by Bank Indonesia. A breach to the upside of a two-week-old resistance line might reaffirm a multi-month high. The short-term downside is constrained by the 21-DMA and an ascending trend line from late September.
The USDIDR continues to rise as it waits for the Bank Indonesia (BI) Rate announcement on Thursday morning, reaching a one-week high above $15,700 at the time of publication after a four-day upswing.
To allay inflation anxieties in the Asian economy, the BI is prepared to announce this year’s fourth rate increase. Nevertheless, at today’s monetary policy meeting, the Indonesian central bank is anticipated to increase the rate by 50 basis points to 5.25%, a three-year high.
Due to the potential for a successful breach of a downward-sloping resistance line from November 4, which is now at approximately $15,720 as of press time, the multi-month high set earlier in November at around $15,745 is receiving significant attention.
If so, the $16,000 level may entice USDIDR bulls before leading them to the 2020 annual top at $16,740.
In contrast, pullback movements are difficult to make until they breach the $15,615 support level of the 21-DMA.
But at $15,425, a seven-week-old rising support line might threaten the USDIDR bears.
The final line of defense for the USDIDR bulls looks to be a rising trend from August 2022, close to $15,160 at the latest.