The USD/PKR has enjoyed a rather solid bearish trend since late summer. However, the past few weeks have seen support become stronger and resistance levels have been consistently tested in the short term. The past five days of trading, though, have begun to demonstrate the ability of the USD/PKR to hold the line and, as of this writing, the 160.1000 level appears to have a magnetic force.
Interestingly, resistance levels technically have shown signs of incrementally decreasing the past few days. While the 160.4000 level looks like a logical resistance target now, speculators may believe that the 160.3500 limit can actually be used as a tighter value to put stop losses to wager on downside movement.
The USD/PKR’s mid-term bearish trend, although perhaps momentarily stalled, appears to be signaling the potential for another round of lower moves. Support around the 159.9500 mark should be watched carefully, and conservative traders may want to see additional downside momentum develop before they pursue more bearish activity. However, they will then need to practice patience and make sure they know how long their Forex brokers allow ‘standing orders’ to remain active.
If the 159.9500 level is broken and trading is sustained below this juncture, the USD/PKR may be ready to challenge values below abruptly. The rather tranquil waters of the USD/PKR may allow short sellers an opportunity to enter limit orders around current values and pursue a bearish trend now, while using the nearby resistance levels as stop loss ratios.
While it is difficult to write about the USD/PKR as anything but a volatile Forex pair, traders may be able to participate and enjoy a rather tranquil ride. The current price level of the USD/PKR, when compared to its long term values, does show that the capability exists for bearish momentum to reignite. If current resistance junctures keep on demonstrating an ability to incrementally decrease near term, the USD/PKR could be signaling it is ready to break free from its current consolidated trend line and renew downward action.
Trading volumes within the USD/PKR are not heavy and the Forex pair can certainly suffer from a sudden spike. However, traders who use solid risk management may find an opportunity to pursue speculative selling positions at its current values and look for support levels to be broken near term, based on recent trading within the Forex pair.
Pakistani Rupee Short-Term Outlook:
- Current Resistance: 160.3500
- Current Support: 159.9500
- High Target: 160.6100
- Low Target: 159.7500
