The USD/PKR is still hovering near values of 166.5500 in early trading this morning. The currency pair has shown a tendency to trade below this value the past couple of days and test support near the 165.5000 juncture. However, the Pakistani Rupee has not been a powerhouse for value the past few months, and buyers of the USD/PKR have dominated the markets.
The trading range for the USD/PKR remains in the middle of its short term range, meaning that its direction is all about interpretation and deciding what thoughts you have regarding risk sentiment. Global indices have again turned positive; the risk-adverse trading which was seen momentarily early this week has evaporated rather quickly. However, the global markets have been filled with risk appetite the past few months as equity indices have been taken higher on positive momentum, and most importantly the Pakistani Rupee has not found many supporters.
While the USD/PKR looks like it may want to test support levels near the 165.5000 level, traders need to be aware that selling the forex pair is highly speculative. Traders do not like to hear the word gamble when they are placing their positions, but the USD/PKR is a trade that must be done with a massive amount of foresight. You should place limit orders when trading the Pakistani Rupee to guard against sudden spikes in both directions, otherwise and you may as well go to the casino and try your luck there.
Speculators who believe that the mid-term trend of the USD/PKR remains bullish will continue to consider buying positions. The Pakistani Rupee has shown few signs of suddenly emerging as a strong currency which is going to gain value against the US Dollar and attract a massive amount of selling. It should also be remembered the USD/PKR is a highly controlled currency and its trading is predicated on government willpower and commerce that is not highly transparent.
Experienced traders may be tempted to sell the USD/PKR at its current levels and look for profits around the 166.0000 level as short term speculative trades. However, placing a buy limit order at the 166.0000 juncture and looking for a reversal upwards may be the best decision of all. Patience and risk management are vital when trading the Pakistani Rupee.
Pakistani Rupee Short Term Outlook:
Current Resistance: 168.0000
Current Support: 165.5000
High Target: 168.5000
Low Target: 165.0000
