The USD/PKR does not trade in a vacuum, but recent trading of the Pakistani Rupee suggests that its trend is not correlated to many forex pairs. Speculators of the USD/PKR know that trading the Pakistani Rupee is not an ordinary trade. Selecting this forex pair allows traders to test their technical skills but it also includes the acceptance that volatility is a major component. Luck plays a part in the outcome unless you happen to have an exceptional knowledge about trade deals being conducted within Pakistan and its international partners.
Resistance levels of the Pakistani Rupee have been broken the past week and the buying of the USD/PKR remains evident. Resistance around the 167.0000 juncture appears to be the next touching point if the USD/PKR continues to find buyers and the Pakistani Rupee loses additional value. The last time the USD/PKR traded near these price levels was in late April.
The late April price correlation of the USD/PKR should cause speculators a moment of reflection. While most forex pairs globally have gained against the US Dollar the Pakistani Rupee has not been able to sustain gains. Support levels for the USD/PKR technically appear to be strong around 16.5000. Traders who are brave enough to sell the USD/PKR against the current trend certainly have justification to envision the Pakistani Rupee can gain value and step into line with most other currency pairs against the US Dollar, but they will be going against short term technical charts that are not sympathetic.
The USD/PKR is a playground for speculators who are attracted to risks for the potential of large profits. Current resistance levels appear vulnerable and the trend since late May has shown a gradual erosion in value for the Pakistani Rupee. However, buyers of the USD/PKR must keep in mind the ever-present threat of volatility and the inevitable and sudden declines in value, which also take place and a look at a one month chart makes clear.
A lack of trading volume in the USD/PKR makes this currency pair a position where stop losses can prove dangerous, meaning undertaking a trade of the Pakistani Rupee needs to include deep pockets to sustain price swings and strong emotional resolve.
Pakistani Rupee Short Term Outlook:
Current Resistance: 167.0000
Current Support: 165.5000
High Target: 167.6000
Low Target: 164.0000
