The USD/PKR made its low for the week this morning while trading, but the important part of this news for speculators is that the currency pair then reversed higher almost immediately.
- Like a steady heartbeat the USD/PKR exchange rate traverses a known technical range which delivers a rather consistent range for speculators.
- The USD/PKR touched the low for the week early this morning when the 277.9800 ratio was challenged, interestingly the USD/PKR traded near 277.9600 on Thursday the 22nd of August.
- However, this morning’s low immediately caused a reversal higher, like last week’s low.
The high for the USD/PKR occurred yesterday when the currency pair touched the 279.0000 level. The last time the USD/PKR traded above the 279.0000 level with any signs of consistency was in March of this year. The high seen yesterday caused a rather strong downwards move which began to test the 278.1600 level. The current value of the USD/PKR is near the 278.5250 mark.
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USD/PKR Lower Moves and Speculating on Upside
Pakistan controls the value of the USD/PKR exchange rate with a rather iron grip, the price realm of the currency pair when looking at mid-term charts shows the rather well defined behavior. The ability of the USD/PKR to constantly create upwards momentum when support is tested has been established. The idea of buying the USD/PKR near support levels and hoping for a move upwards is not farfetched. However, in order to accomplish this with the USD/PKR, entry price orders must be used and then a trader has to hope the trade is initiated by their broker.
Intriguingly the USD/PKR has begun to show the ability to climb to new highs in recent trading. Traders aiming for the 278.7000 mark when buying support levels below have likely found an opportunity to profit. Traders should not get overly ambitious in the USD/PKR, but if they can enter a trade near support levels and use adequate stop losses below, there is an opportunity to take advantage of reversals higher which technically are produced rather steadily.
USD/PKR Lack of Volume and Other Problems
The USD/PKR is not a heavily traded currency pair, its lack of volume makes speculating difficult. A trader needs patience and strong emotional fortitude because the USD/PKR may require an overnight trade to accomplish take profit targets.
- Speculators aiming for upside in the USD/PKR cannot be blamed. The currency pair continues to show a total lack of correlation to the broad Forex market, making trading of the USD/PKR for those who have experience a necessity, this in order to practice solid risk taking tactics.
- The high in the USD/PKR yesterday may be a telltale sign that looking for take profits targets around the 278.7000 to 278.8000 remain viable if a buying position can be started below using technical support levels as an entry point.
Pakistani Rupee Short Term Outlook:
Current Resistance: 278.6250
Current Support: 278.4000
High Target: 278.8025
Low Target: 278.1500
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