Further upside in the short-term horizon looks likely in USD/IDR, commented Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“We highlighted last Monday (13 Jun, spot at 14,655) that ‘rapid boost in momentum is likely to lead to further USD/IDR strength’. We indicated, ‘resistance levels are at 14,700 followed by 14,735’. The anticipated advance exceeded our expectations as USD/IDR jumped to a high of 14,833 last Friday.”

“Upward momentum remains strong and USD/IDR is likely to strengthen further. However, overbought shorter-term conditions suggest that the major resistance at 14,950 is likely out of reach this week (there is another resistance at 14,900). On the downside, support is at 14,800 followed by 14,680.”