The USD/PRK continues to traverse in a bullish manner and is making resistance look quite vulnerable as speculative conditions grow.
Speculators with the ability to trade the USD/PKR are likely being attracted to the rather dynamic bullish trend the Forex pair is producing. New all-time highs are being registered in a consistent manner. Traders who are considering a wager on the USD/PKR not only have to pay attention to the potential of volatility within the pair, but the amount of transaction costs they will be charged for the wager.
There are no guarantees while trading; direction is seldom a one-way avenue. Even though the USD/PKR has brushed aside resistance levels with relative ease for a while, the daily gyrations within the Forex pair still display reversals downward regularly. Traders who are intent on holding a USD/PKR position need to use an exact entry price order to make sure their fills meet their expectations and they should use a stop loss position which guards against the sudden chance of a wrong direction emerging.
Intriguingly within the USD/PKR is the amount of price velocity which has taken place within the Forex pair in recent trading. Yes, the bullish momentum has been predicted, but the ability to climb higher and be trading near the 170.5000 juncture after trading near the 169.2000 mark only a week ago is rather pronounced. However, even as the USD/PKR often has a mind of its own in Forex, the pair has correlated to the rather strong USD in global markets too.
Technical traders should take a look at support near the 170.4000 level; if this is able to be maintained and entry orders allow for long positions near the 170.5000 mark, a target of 170.6000 is not out of the question. Traders should be cautious though, as overly ambitious long positions could cause a trader to hold a position overnight.
The costs of carrying charges for the USD/PKR must be understood. It cannot be stressed enough that speculators need to know via their trading platforms what the fees are for trading the Forex pair. The fact the USD/PKR is considered an exotic wager could mean that the brokers’ costs are higher than usual compared to regular pairs for their work.
Wagering on long positions within the USD/PKR continues to make sense when it can be done. Traders should use take profits with a realistic target to cash out winning positions if they are attained. The USD/PKR has a bullish trend and until it shows a sustained amount of reversals lower, buying the pair remains a solid speculative endeavor.
Pakistani Rupee Short-Term Outlook
Current Resistance: 170.5500
Current Support: 170.4000
High Target: 170.6600
Low Target: 170.3000