The USD/PKR has endured choppy trading the past five days, but its range should not be a surprise to anyone. Speculators seeking to trade the Pakistani Rupee via forex platforms are looking at the USD/PKR as an opportunity to make a short term profit, the forex pair is not exactly an air tight investment long haul. If speculators are seriously contemplating trading the Pakistani Rupee they need to use solid tactics in order to take advantage of its gyrations.
The word gyration is used carefully above; because describing the value of the USD/PKR with the word ‘movements’ would be a description that is too calm. Trading the Pakistani Rupee has distinct disadvantages which must be known before speculating. No matter your forex broker and the technology they offer via their platform, the USD/PKR is a volatile pair and when entering market orders without limits you are likely going to be surprised often with your price ‘fill’ – the value your order has been allotted when opening your position.
So it is extremely important when trading the USD/PKR to use limit orders. This does not guarantee that you will be protected against volatility all the time, but it does work as insurance with a better chance of protection. The resistance level for the USD/PKR short term appears to be 167.5000 and this appears to look enticing because the past few days of trading have seen support levels strengthen.
Current support for the USD/PKR short term appears to be near the 167.0000 level, but this could prove vulnerable too and the forex pair could easily aim for the 166.0000 juncture. The USD/PKR continues to trade near its record high resistance levels and this is not likely to change anytime soon. What speculators must be able to do is to enter limit positions and have the patience to take advantage of its dynamic fluctuations while protecting their own accounts with a proper amount of leverage.
Traders may actually be tempted to look for downside action in the short term for the USD/PKR which means selling the US Dollar against the Pakistani Rupee. Traders may want to enter sell limit order near the 167.5000 levels to look for another test of support levels below.
Pakistani Rupee Short Term Outlook:
Current Resistance: 167.5000
Current Support: 167.0000
High Target: 168.0000
Low Target: 166.0000
