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USD/PKR Analysis: Quiet Returns and Patience Needed for Speculators

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 returned to a rather tranquil trading display this week for those watching the changes in value to the currency pair and considering the idea of wagering.

USD/PKR Analysis Today - 04/07: Patience Needed (Chart)

  • The USD/PKR exchange rate is near the 278.4500 mark as of this writing.
  • This price level is within the middle of the one and three month value realm for the USD/PKR. The Pakistan Rupee remains locked within an official rate which is determined by the Pakistan Central Bank.
  • Traders expecting the emergence of a free floating USD/PKR are advised to find other pursuits. In order to trade the currency pair an extreme amount of patience is needed.

Speculators who find the USD/PKR available to trade on their brokers’ platforms should ask questions regarding transaction costs first and foremost. While it is nice that the USD/PKR is offered as a speculative currency pair, traders also must realize that the ability to bet comes with a cost. The temptation to hold onto the USD/PKR and wait for a price target to simply get filled is pragmatic, but the fees charged for overnight positions could make speculation on the currency pair punitive if not done correctly.

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USD/PKR Sudden Burst Higher Followed by the Low

The USD/PKR provided traders yesterday a high for the week when the currency pair suddenly jumped to the 278.8338 vicinity, this after largely trading near the 278.1590 mark before the jump upwards. The high on Wednesday then reversed and produced the low for the USD/PKR when a value of 277.5600 was seen moments later. Importantly traders need to understand these values appear with large gaps, it is not as if trading in the USD/PKR is politely touching values in between these highs and lows most of the time.

Today and tomorrow USD/PKR traders should also note the Forex world will be rather tranquil because of the U.S holiday. However, volumes within the USD/PKR official rate being published by the Pakistan Central Bank is largely unaffected by these matters. The U.S will also publish jobs data tomorrow, but again this will have almost no impact on the consideration of USD/PKR value.

U.S Data is a Likely Non-Event for the USD/PKR

  • Entry price orders are needed to trade the USD/PKR in order to get a fill that meets the speculators expectations. Volumes are low in the USD/PKR, so this might take a while for the order to be made official.
  • Yesterday’s high and lows for the week were made moments apart and shows that the Pakistan Central Bank marches according to its own rhythm, and speculators need to endure long moments of silence as they wait for price action to suddenly develop.

Pakistani Rupee Short Term Outlook:

Current Resistance: 278.4425

Current Support: 278.3200

High Target: 278.7450

Low Target: 278.0700

Ready to trade our daily Forex forecast? Here’s a list of some of the top brokers & trading apps in Pakistan to check out. 

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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