USD/IDR: Phase of rebound expected to extend once above 15,200 – SocGen

Economists at Société Générale analyze USD/IDR technical outlook.

Bounce after defending crucial support at 14,600/14,500

USD/IDR successfully defended the earlier highlighted support zone near 14,600/14,500 representing high of 2021. It has staged a steady bounce after this test however it has so far remained unable to reclaim the 200-DMA near 15,200. Recent test of this MA has resulted in a pullback. 

A large downside is not envisaged; only a break below 14,600/14,500 would denote possibility of a larger downtrend.  

Once the pair reclaims the MA near 15,200, the phase of rebound is expected to extend. Next potential hurdles would be at March peak of 15,480 and previous down gap near 15,750/15,810.