The USD/PKR is a speculative delight for traders who like the potential of volatility. The Forex pair is now challenging highs, but continues to languish within a ‘bizarre’ consolidated stranglehold, taking into consideration the USD/PKR’s endless ability to demonstrate rather rapid value fluctuations in the past. The current value of the Pakistani rupee is challenging resistance not traversed since late December and, if the 160.4000 mark proves vulnerable, the USD/PRK could then test values seen the 21st to 23rd of December when the Forex pair traded near the 160.7000 level.
Interestingly, the USD/PKR has traded within a value band of approximately 159.3000 to 160.6000 since the beginning of December. The New Year also has experienced plenty of this same price range, and some speculators may assume that the same levels will remain rather magnetic going forward. However, the USD/PKR’s relative consolidation it has exhibited since the middle of November is unlikely to continue. This is not a Forex pair which offers constant quiet days and calms nights.
Traders will need to practice patience, but the recent tight range of the USD/PKR is likely to prove a momentary rest period and, when volatility does reignite, it will offer plenty of speculative opportunities. The USD/PKR has enjoyed a solid mid-term bearish trend and it remains within the lower realms of its values since trading near a high of 168.2000 in late August.
The USD has displayed a sudden wave of short-term strength in Forex across the globe; the question is if this will be a short-lived trend or part of a new dynamic. The USD/PKR is not a heavily traded Forex pair, and its value does not always correlate to the broader Forex markets. However, the ability of the Pakistani rupee to accomplish a bearish trend has not gone unnoticed. Speculators may be intrigued by the test of higher values within the USD/PKR short term and seek selling positions.
However, the recent climb in value of the USD/PKR needs to be treated carefully. Buying the USD/PKR and speculating on the potential for additional short-term moves upward may be an interesting wager. Support levels appear firm and can be used as stop loss ratios. The rather consolidated range of the USD/PKR can disappear quickly, so limit orders remain an important ingredient when trading the Forex pair.
Pakistani Rupee Short-Term Outlook:
- Current Resistance: 160.4500
- Current Support: 160.0000
- High Target: 160.6400
- Low Target: 159.5500
