Although the USD/PKR has maintained its rather strong bearish mid-term stance, recent trading has seen resistance levels rise.
The USD/PKR is likely making speculators of the Forex pair rather nervous short term. The USD/PKR has accomplished a rather strong mid-term bearish trend, but has seemingly run into resilient support levels which have proven tough to puncture lower. In fact, in recent trading, the USD/PKR has shown an ability to test higher resistance, which may be raising suspicions that the Forex pair could begin to produce a bullish reversal higher.
The rather choppy range of the USD/PKR, however, has taken place within a rather tight and consolidated range. This may be signaling that the Forex pair is simply within an accumulation period as it waits for its next surge of impetus, but the question is: in which direction will the impetus push? Speculators who believe the mid-term bearish trend of the USD/PKR will continue to sustain and create further downside momentum cannot be faulted. However, the USD/PKR is not among the world’s most transparent Forex pairs, so venturing a notion that its trading waters will remain calm is not an easy task.
Global risk appetite appears rather optimistic, though, and this may continue to help the USD/PKR muster some downward movement. Support near the 158.5000 level will have to prove vulnerable for the bearish trend of the USD/PKR to prove it has additional firepower to accomplish lower depths.
First and foremost, the 159.0000 support level must be broken lower. In the short term, the 158.5000 mark below has produced several reversals higher. Until a clear demonstration of puncturing these support levels is proven, the USD/PKR may continue to find a rather consolidated range. Traders who are pursuing selling positions need to use stop losses active to guard against the potential of sudden spikes upward. The 161.0000 mark was challenged on the 24th of November.
However, if resistance at the USD/PKR’s current levels prove adequate near term, there is reason to suspect that speculating on further downside action may continue to be the right choice. Timing the movements of the USD/PKR is hard because of a lack of volume within the Forex pair. Yet, if speculators want to pursue mid-term technical trends, the appearance of the USD/PKR’s bearish cycle does seem to indicate that it has further room to traverse lower.
Pakistani Rupee Short-Term Outlook:
- Current Resistance: 160.1000
- Current Support: 159.1000
- High Target: 160.7500
- Low Target: 158.5000