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USD/PKR Analysis: Perspective and Reality of Wagering in Thin Volumes

By Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

The USD/PKR technically via a line chart for this past week shows rather interesting price action upwards, but in order to wager on the currency pair certain realities must be understood.

USD/PKR Analysis Today - 30/05: Thin Volume Trading (Chart)

  • As of this writing the USD/PKR pair is near the 278.3250 mark which is slightly above its middle ground technically taking into consideration the past handful of days.
  • When a one month chart is looked at the USD/PKR is also near the higher elements of its middle ground.
  • Yet, in order to come to this conclusion the reality of understanding that the USD/PKR value depends on the individual trader’s perspective.

The USD/PKR is not a high volume Forex pair, in fact it is very light. The official rate which is displayed here technically is done via a line chart, because showing candlesticks would demonstrate just how empty the trading volume is most of the time. The official rate posted by the State Bank of Pakistan can move without transparent reasons, except to say the USD/PKR is controlled firmly by the government of Pakistan.

Correlations in the USD/PKR to U.S Economic Data are Limited

Traders trying to interpret technical moves of the USD/PKR exchange rate are correct because it is an important tool, and the ability to wait out support and resistance levels and ability to trade within the ‘middle ground’ of the existing price range may prove the most beneficial. However to do this a speculator needs solid patience and the determination to simply wait for the USD/PKR to hit a targeted take profit order.

Looking for correlations via USD centric sentiment in the USD/PKR is more than challenging, it may be wrong headed. The USD/PKR has kept a solid price range over the mid-term and has maintained its lower values, but this has been accomplished within an extremely tight value band. The U.S will be releasing Gross Domestic Product numbers today. While the impact of the U.S reports will affect the broad Forex market with volatility, this will not be the case most likely with the USD/PKR. Traders looking to take advantage of moves in the currency pair need to choose a price target that is realistic, place an entry order, then upon being told they are filled – the trader then needs to set official take profit and stop loss orders and play a waiting game.

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Transparency and Trying to Understand USD/PRK Official Price Rate Decisions

The USD/PKR did hit a low of 278.0000 this week, which has been tested a lot over the past month. The high for the USD/PKR was nearly 278.6645 this week, which was actually a high for the month and challenged a price last seen on the 1st of April.

  • However, knowing exactly why the high of the USD/PKR suddenly emerged is difficult to know because there is a lack of transparency within the currency pair.
  • Traders who want to wait for support levels to be tested and then ignite buying positions looking for some upside cannot be blamed.
  • However traders of the USD/PKR need to understand the art of risk taking in order to profit from wagering on this currency pair.

Pakistani Rupee Short Term Outlook:

Current Resistance: 278.4300

Current Support: 278.2620

High Target: 278.5900

Low Target: 278.0800

Ready to trade our Forex daily analysis and predictions? Here are the best Pakistan trading brokers to choose from. 

Robert Petrucci
About Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.
 

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