Speculators of the USD/PKR may be the perfect group of people to practice a humorous talk while discussing the trading of this forex pair. Unless a trader has a distinct inside knowledge of Pakistan and the way it conducts business and its government mechanics, trading the USD/PKR remains guess work for nearly everyone else.
It has been reported that Pakistan has paid back one billion USD to Saudi Arabia recently, but this is part of a loan that totals three billion USD and reportedly it is supposed to be paid back in full by next year. Unfortunately, it appears to pay off this segment of the loan to Saudi Arabia, Pakistan needed to borrow the money from China. While it is good Pakistan repaid this part of the loan to Saudi Arabia, it is concerning it had to do this by essentially taking more money from China which will certainly come with demands down the road economically and perhaps politically.
After testing support for a stretch of about five days near the 165.5000 level, the USD/PKR has seen a new surge higher and the forex pair is retesting important support levels. The Pakistani Rupee hit a value of 168.5000 in late July and speculators may believe this level is destined to be tested near term. However, patience is needed by traders of the USD/PKR because sudden bursts of movements can be painful and fast, which means speculators need to position themselves beforehand with limit orders when trading this forex pair.
The USD/PKR will remain a challenging forex pair to trade for a long time. Speculators need to be able to withstand overnight carrying charges via their forex platforms and use leverage very carefully to guard against sudden spikes. Whipsaw movements like the ones seen the past couple of days should always be expected. A sense of humor is a must when contemplating the USD/PKR as a speculative trade too, because traders will need to be able to laugh at themselves if things go against their technical perceptions.
After showing some ability to trade near support recently, the USD/PKR is again touching important resistance levels. Speculators cannot be faulted for believing the long term bullish trend of the USD/PKR remains solid and a potential buying opportunity.
Pakistani Rupee Short Term Outlook:
Current Resistance: 168.5000
Current Support: 166.5000
High Target: 169.0000
Low Target: 165.5000
