USD/IDR Price Analysis: Indonesian Rupiah drops 1%

• USD/IDR sees oversold bounce but remains below the multi-month falling trendline. 
• A breakout above the trendline hurdle would confirm a bullish reversal. 

The Indonesian Rupiah is currently trading at 14,155 per US dollar, representing a 1% decline on the day. The currency hit a low of 14,244 per US dollar a few minutes before press time. 

The uptick in the USD/IDR pair could be associated with the oversold reading on the 14-day relative strength index. The MACD histogram, too, is about to cross above zero. That would confirm a bullish reversal. 

However, a more credible signal of a trend reversal would be the pair's breach of the trendline falling from April 3 and June 2 highs. Currently, that trendline resistance is located at 14,250. A daily close above that level would expose the resistance at 14,732 (June 1 high). 

The bears, however, could make a strong comeback if the descending trendline proves a tough nut to crack. On the downside, key support is seen at 13,952 (June 8 low), which, if breached, would expose support at 13,620 (Feb. 6 low). 

Daily chart

Trend: Oversold bounce

Technical levels