Short term traders must be able to change their direction quickly. Technical traders are good at doing this because they often gain their insights via charts and shut out the noise from the media which is heralding the latest economic news. Earlier this week when global equity markets were nervous a buying opportunity of the USD/IDR presented itself and paid off for speculative traders who were able to ride negative sentiment as the safe haven of the US Dollar was sought.
However, as the weekend approaches the global markets have shown signs of calming. Entering positions and maintaining them over the weekend can be a roller coaster ride emotionally. Holding onto positions as Saturday and Sunday pass is not the easiest thing to do when you are trading speculatively. You must understand if a news event surprises the marketplace, gaps can emerge on Mondays which can knock you out of trades and cause significant losses.
The Indonesian Rupiah interestingly enough is pushing up against resistance which has proven to be strong in June. A close juncture near 14200.0 has emerged and the higher resistance mark of 14250.0 could prove a capable juncture if it is tested and cause potential reversals downward. That is not to say the Indonesian Rupiah can’t lose more value and surpass this resistance and test higher marks. There is a dangerous gap between the levels of 14250.0 to 14500.0.
If a trader is willing to put a speculative selling position of the USD/IDR into motion a short within its current value range of 14180.0 to 14200.0 could not be faulted. Support appears to be around the 14100.0 juncture and if this value proves vulnerable it is within possibilities the USD/IND could move lower and test the 13900.0 to 14000.0 marks without much effort.
Again, putting on a trade as the weekend draws close can prove problematic. Traders who are pressed to close their open positions before today ends should understand that forcing short term trades can be dangerous. However, if a trader has the capability to sell the USD/IDR and carefully put risk management into place, shorting the US Dollar against the Indonesian Rupiah could prove worthwhile.
Indonesian Rupiah Short Term Outlook:
Current Resistance: 14200.0
Current Support: 14100.0
High Target: 14250.0
Low Target: 13900.0
