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USD/PKR Analysis: Lack of Correlations Amidst Wagering Considerations

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 has turned in a curious price range the past handful of days and in fact the last two weeks as it has incrementally climbed higher in a quiet manner.

USD/PKR Analysis Today - 01/08: Lack of Correlations (Chart)

  • Traders of the USD/PKR currency pair are always looking for clues regarding the currency pair’s trend, particularly because there is a lack of correlations compared to the broad Forex market.
  • The USD/PKR is near the 278.5550 ratio at the time of this writing. Intriguingly the currency pair has touched a high around 278.7755 mark earlier today, which is a value that had last been seen since the 12th of July.

On the 19th of July the USD/PKR touched a low of almost 277.8000. The currency pair since touching this low has sprung higher. However, it is important to note that there has not been a lot of price velocity, trading volumes remain astonishingly low in the USD/PKR, and reversals do happen in the currency pair which means retail traders cannot bet blindly on a perceived movement. Yet, the ability to climb higher the past couple of weeks is curious and what happens next will tell us a lot about the USD/PKR and Central Bank of Pakistan.

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Lower Move After Early High Attained in USD/PKR

After touching this morning’s high in the USD/PKR the Forex pair did turn a bit lower. Speculators are reminded to use entry price orders in the USD/PKR, so they are not given fills that prove bewildering. The ability to use the higher resistance level which was hit this morning as a take profit ratio may have proven difficult. Except yesterday’s high in the USD/PKR touched the 278.7475.

The reason strict entry price orders are highlighted as a suggestion for the USD/PKR is because volumes are limited. Meaning the pair doesn’t touch certain values for a long time before reversing and opening the prospect of not being filled in a trade. The use of technical charts is important for day traders to gain additional perspective in the USD/PKR, but it is also better to aim for values below apex heights and the lowest of depths, because a broker may suggest that an order has not been filled because the currency pair didn’t sustain the price targeted for a long enough time.

Near-Term Considerations in the USD/PKR this Week

Because the USD/PKR has touched highs yesterday and today, the currency pair may be about to test highs seen in early July. But traders should not count on these good graces as a take profit realm. Instead, traders may want to use lower moves in the USD/PKR to around the 278.4000 278.3000 as locations to then look for upside price momentum to develop.

  • Traders as always in the USD/PKR need to understand that stop loss and take profit orders should be used to guard against sudden spikes.
  • And the use of conservative leverage is highly recommended.

Pakistani Rupee Short Term Outlook:

Current Resistance: 278.6440

Current Support: 278.4900

High Target: 278.5400

Low Target: 277.3790

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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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