USD/IDR Price Analysis: Better bid, but still trapped in a contracting range

• USD/IDR's daily candles show the pair has is trapped in a narrowing price range. 
• A range breakout above 16,500 is needed to put the bulls into the driver's seat.

USD/IDR is currently trading near 16,300, representing a 1.3 percent daily decline in Indonesia's Rupiah.

While the pair is better bid, it is still trapped in a contracting range represented by the consecutive inside day candles created over the previous two trading days.

An inside day candle occurs when the size of the daily candle fits within the range of the preceding day's candle and indicates consolidation or indecision in the market place.

As a result, the next move depends on the direction in which the range is breached. A close above Wednesday's high of 16,500 would imply range breakout, while acceptance under Wednesday's low of 16,027 would confirm range breakdown.

Daily chart

Trend: Neutral

Technical levels