The Pakistani Rupee should get a long and thoughtful look from speculators early this week. While the USD/PKR has not broken through resistance, it does continue to test weaker values. As global market conditions demonstrate further poor sentiment, traders should consider a venture into the rather volatile depths of the USD/PKR if they feel they have the emotional strength to swim its waters.
The resistance level of 168.0000 is an obvious target for short term speculators, but to achieve a profitable trade you must get into the marketplace first. Patience is needed if you are trying to trade the USD/PKR with targeted values to enter the market. The Pakistani Rupee is a low volume forex trade, which means a decision to enter at current market prices could be met with surprise when you find out which value you have been given as a result of deciding to enter the market without entry-level consideration.
Buying into the USD/PKR at its current price junctures may prove worthwhile, but to do this you have to have patience, agility to act and the ability to choose your stop loss wisely. Because of the sudden volatility within the USD/PKR a quick flourish of selling of the USD/PKR can effectively knock you out of your long position if you are not careful. You have to choose the amount of leverage you trade carefully when deciding to take a position with the USD/PKR.
Fortunately, support levels appear to be rather firm near the 166.9000 level. Volatility is a staple of the USK/PKR but speculators who choose to trade this forex pair already know this fact. Unless a trader has intimate knowledge of the Pakistan government’s and its corporations’ commercial activities, taking a position of the USD/PKR is essentially done via technical charts and a reading of global market sentiment. However, the stronger support levels of the USD/PKR which have developed the past few trading sessions could prove enticing and worthwhile for speculators.
The USD/PKR continues to demonstrate a weaker foundation of value for the Pakistani Rupee. The USD/PKR is certainly a speculative trade, but under the present market conditions which show the USD/PKR is being bought and what appears to be weaker risk appetite globally, staying long and remaining a buyer of the US Dollar against the Pakistani Rupee seems a logical speculative trader.
Pakistani Rupee Short Term Outlook:
Current Resistance: 168.2000
Current Support: 166.9000
High Target: 168.5000
Low Target: 166.5000
