26.02.201408:29 Forex Analysis & Reviews: Technical analysis of USD/IDR for February 26, 2014

Long-term review

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The USD/IDR now have a good strengthened momentum against USD by a few factors such as:

1. Jannet Yallen's policy on the FED's Stimulus.

2. The JSX (Jakarta Stock Exchange) rebound causes the capital inflow to Indonesia.

As we know, USD/IDR has a positive correlation with the JSX indices which are influenced by the Dow, Nikkei, Hangsheng, Strait Times indices. Today this currency has a good strength momentum to 11.380 (low), but after the 11.380 level, the USD/IDR going back to 11.635 again, and at the Daily Charts Candle, it has already made a hanging man formation. This situation happened because the Indonesian stock market has already a technical issue and getting down into the red zone. As we know, since February 17, 2014 many capital inflow have already come to Indonesia especially in the Money Market, and it is normal if this currency has a little pullback.

As long the USD/IDR does not breach and close above 11.692.45, this currency will play between the 38.2% to 61.8% Fibonacci area's (11.692.45 - 11332.55); otherwise if they can breach and close bellow 11.332.55, it will have a chance to go down to the 78.6% (11.076.35) level.

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