USD/IDR Price News: Indonesian rupiah trapped in falling channel, with oversold RSI

• USD/IDR remains near two-month lows just above 14,600.
• Dollar weakness – key catalyst for the declines.
• Oversold RSI on hourly sticks points to a bounce

USD/IDR extends last week bearish bias and hit a new two-month low at 14,607.50 in the last hour, as the sell-off in the greenback remains the key catalyst behind the weakness.

The risk-on market mood, reflective of the rally in the Asian stocks, offers some support to the Indonesian currency. However, the spot risks a bounce back above the 14,700 levels, in light of the near-term technical view.

On the hourly sticks, the price continues to waver in a potential falling channel pattern, with a natural tendency to break to the upside. The spot, currently, flirts with the descending trendline support at 14,604, with the hourly-Relative Strength Index (RSI) pointing south within the oversold conditions.

This suggests that the cross could attempt a bounce back towards the descending trendline upside barrier at 14,743 levels.

Alternatively, a false breakdown could be charted below 14,600 mark, as the bears look to test the 14,500 psychological support area.

USD/IDR: Hourly chart

USD/IDR: Additional levels