If you did not know it already and were comfortably considering a day of relaxation while trading the USD/PKR you have likely been given a reminder early this morning trading the Pakistani Rupee is a speculative endeavor. Please get off of your beach chair and return to your computer to watch the forex pair trade. After testing support levels yesterday, while remaining obviously still within the weakest regions of its long term range, the US Dollar has suddenly shown a strong dose of strength against the Pakistani Rupee again.
Short term resistance levels of 168.0000 were easily brushed aside early today and the USD/PKR is trading near historic highs as the Pakistani Rupee suffers. News about Pakistan and China was reported yesterday from a China media outlet about renewed promises made regarding its work together on the ‘new silk road’ which Pakistan has intentions of developing in an effort to help its economy, but something happened within the forex markets which has not been brought to ‘light’ yet and the Pakistani Rupee has stumbled to weaker values this morning.
Trading the USD/PKR doesn’t offer speculators a lot of transparency. Placing a call to Pakistan and inquiring about its commercial and economic dynamics is not easy unless you have skin in the game economically in the nation. Pakistan continues to be shadowed by coronavirus concerns. Despite what appear to be infection statistics which show the situation is being managed, critics suggest the lower numbers compared to other nations is because testing is not being conducted widely in Pakistan.
Support levels short term for the USD/PKR technically has developed into higher ratios. The 167.5000 juncture may look like an interesting place to look for reversals higher for the USD/PKR if it is challenged. The long term trend of the USD/PKR has been a bullish move higher. Yes, there have been moments when the Pakistani Rupee has seen small short term bursts lower which has broken support levels, but patient speculators who manage their leverage well and use limit orders seemingly have an opportunity to look for the bullish momentum to continue.
Sudden spikes in the USD/PKR are part of its trading landscape. This is a forex pair that will make even experienced speculators uncomfortable if they have not used proper risk management. Pakistan certainly is part of the global economy; it maintains trade with the United States and has a unique political strategy that tries to work with China and the US.
However, challenges persist for Pakistan and the Pakistani Rupee remains a candidate for further weakness as economic concerns cause problems. Buying the USD/PKR if possible around the 167.5000 to 168.0000 levels and looking for additional movement upwards is a speculative, but logical decision based on technical sentiment.
Pakistani Rupee Short Term Outlook:
Current Resistance: 168.6000
Current Support: 167.0000
High Target: 169.0000
Low Target: 166.5000
