The USD/PKR has seen some downward momentum develop the past two and half days of trading. The Pakistani Rupee is now testing important short term support ratios and speculators may look at the USD/PKR as a potentially good opportunity. There are no sure things in forex and trading the Pakistani Rupee ranks high on the list for potential volatile speculative trades, but technically the USD/PKR does look intriguing.
The 167.5000 mark has been broken lower and the next support range for the USD/PKR could prove to be between the 166.5000 to 1.6700 levels. However, what makes the bearish movement that developed late last week for the USD/PKR enticing, is its long term bullish trend which now maybe signaling an opportunity to buy the USD/PKR and seek another upwards move to develop.
The middle of last week saw the USD/PKR testing important resistance near the 168.4000 junctures. While traders may look at a one month chart and see that the Pakistani Rupee has been testing important resistance levels continuously and has not been able to break higher than the 168.4000 to 168.5000 marks, it has nevertheless proved an important trading magnet. The fact that the USD/PKR has traversed slightly lower opens the door to the possible support will reassert itself near term and a reversal higher could be experienced.
The current support level of 167.0000 could prove important, but there is the chance the USD/PKR could even traverse lower with a test of the 166.5000 mark. However, a look at the long term trading history of the USD/PKR shows incrementally support levels continue to climb upwards as the USD/PKR has repeatedly tested resistance near the 168.4000 value mid-term.
This sets the table for interesting decisions by speculators who can hold the USD/PKR and withstand its emotional rollercoaster. Traders may be tempted to anticipate another leg lower to the 166.0000 mark and then for a reversal higher to transpire. In fact, a trader may even wait for the 165.5000 support level to be traveled before wanting to step in with a buying position. But that may prove a long wait for traders who are too cautious and want to trade the USD/PKR.
Speculators who have the desire to test the USD/PKR with a buying position now or wait for additional downside momentum should certainly use limit orders to enter the market. Traders should also take profit orders to target the junctures in which they want to exit a position to cash out winners while trading this volatile forex pair.
Pakistani Rupee Short Term Outlook:
Current Resistance: 168.0000
Current Support: 167.0000
High Target: 168.5000
Low Target: 166.5000
