Quek Ser Leang at UOB Group’s ‘Global Economics & Markets Research’ noted that extra weakness below 14,410 in USD/IDR looks out of favour.

Key Quotes

“We highlighted last Monday (30 May, spot at 14,540) that USD/IDR ‘is likely to break the major support near 14,500’. We added, ‘the next support at 14,448 is unlikely to come into the picture’. The subsequent weakness exceeded our expectations as USD/IDR plummeted to a low of 14,415 last Friday. While the rapid drop appears to be overdone, USD/IDR could dip below the major support at 14,410.”

“In view of the oversold conditions, a sustained decline below this level is unlikely. Resistance is at 14,500 but only a break of 14,570 would indicate that the current weakness has stabilized.”