USD/IDR: Still scope for further gains – UOB

Further upside momentum appears unchanged around USD/IDR, notes Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

We highlighted last Monday (18 Sep, spot at 15,370) that “upward momentum has not improved much, but USD/IDR could test 15,400 before easing.” We added, “the next resistance at 15,425 is not expected to come into view.” Our view was not wrong, as USD/IDR rose to 15,410 and then eased to end the week at 15,370 (+0.13%).

While upward momentum has not improved much, USD/IDR could test 15,425 this week before the risk of a deeper pullback increases. The next resistance at 15,445 is unlikely to come under threat. Support is at 15,360; if USD/IDR breaks below 15,325, it would mean that the current upward pressure has faded