(Bloomberg) -- The Indonesian rupiah may strengthen 6.6 percent to 9,785 per dollar in three months, Standard Chartered Plc said, citing trading patterns. The gain would represent a 76.4 percent retracement of the currency’s slide to a decade low of 13,150 in November, from a high of 8,640 in May 2007, Callum Henderson, Standard Chartered’s global head of currency strategy, wrote in a report, referring to numbers in the Fibonacci sequence. “The dollar-rupiah is expected to consolidate below 10,675, but the three-month view is for dollar-rupiah to drop below 10,000 and head toward 9,785,” Singapore-based Henderson wrote in his report dated today. “Technically, clients should sell ahead of 10,675.”
The rupiah climbed 0.7 percent to 10,433 as of 11:43 p.m. in Jakarta, according to data compiled by Bloomberg. It has risen 4.5 percent this year, the best performance among the 10 most-active currencies in Asia outside Japan. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Fibonacci levels are used to determine highs and lows for a currency and predict direction. They include 23.6, 50, 38.2, 61.8 and 76.4 percent. A break past one of these signals a currency may test the next level, while failure indicates a gain or drop may stall.
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