Further upside in USD/IDR is likely to meet a tough barrier at the 14,280 level, according to Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“We highlighted last Monday (25 Oct, spot at 14,180) that ‘there is room for the rebound to extend but a break of the solid resistance at 14,250 (declining trend-line that sits close to the 55-day exponential moving average) would come as a surprise’. Our view was not wrong as USD/IDR rose to 14,205 last Thursday (28 Oct). However, USD/IDR soared earlier today and took out the declining trend-line resistance and is currently holding around the moving average.”

“Upward momentum has improved and USD/IDR could strengthen this week. That said, overbought shorter-term conditions suggest that any advance is likely limited to a test of 14,280.”