The peaceful waters of the USD/PKR should be enjoyed while its rather short term consolidated range perhaps calms speculators. However, traders should not expect much of a vacation if they are active traders of the Pakistani Rupee. The currency continues to test resistance at historically weak values. Resistance for the USD/PKR appears to 168.0000 for the time being. Sudden volatility within the forex pair was evident only two days ago and speculators need to understand quick bursts of change in values is normal.
Support short term looks to be the 167.0000 level for the USD/PKR. Traders can attempt to use narrower technical junctures to position themselves within the USD/PKR, but patience is a key element while trading the Pakistani Rupee. If you position yourself too close to a support or resistance with stop losses, you can almost rest assured you will be knocked out of a trade before its direction develops towards your favor.
Pakistan has plenty of potential to become an important economic entity. It has a large population, plenty of coastline which allows for possible shipping, it has agricultural capabilities and technological ability. Pakistan is also located within a key geographical political area which allows it to form important relationships with strong economic partners, China being the most obvious among them. The government of Pakistan however faces enormous challenges as it tries to balance cultural demands while striving to achieve harmony domestically. Maintaining and creating a vibrant economy that has been hampered by the development of coronavirus has added to worries.
Speculators who have the ability to withstand timeframes and overnight carrying charges for the USD/PKR can find opportunity within this forex pair. If a trader looks at short term and other technical charts of various timeframes, they will notice the bullish trend of the USD/PKR is not a recent development.
Buying the Pakistani Rupee within a price range of 167.1000 to 167.3000 if possible via short term downward price action with limit orders, and anticipating reversals upwards that target the 167.6000 to 1.67.9000 can be justified. The Pakistani Rupee is not a currency for speculators who do not have the experience, traders must be willing to acknowledge this is not a transparent forex environment and its volume is often low which leads to sudden bursts of value. Risk management is needed for successful trading in the USD/PKR. The current consolidation within the forex pair will certainly vanish and volatility should always be expected. To battle, sudden storms within the Pakistani Rupee limit orders are a key element for profitable trading.
Pakistani Rupee Short Term Outlook:
Current Resistance: 168.0000
Current Support: 167.0000
High Target: 168.6000
Low Target: 166.5000
