Technical traders who embrace pure charts can potentially learn to love the USD/PKR if they have enough speculative spirit and risk management experience. The Pakistani Rupee five-day chart has taken on the look of a game of high and lows as it has produced an almost consistent trading heartbeat hitting support and resistance like a ping pong ball being played with equal musical measures.
The USD/PKR has hit the 166.2000 level and slightly above with regularity, and this juncture has essentially proven to be fairly good resistance. Reversals downward have traversed to the 165.5000 support level and then have also been able to show an ability to retrace higher. As always, it must be stated there are no guarantees when trading. A consistent technical chart looks wonderful until it doesn’t anymore. All it takes is one bad day of trading, one detrimental spike in the wrong direction to destroy a trading account if risk management has not been used wisely.
However, if you are a speculator with a firm grasp regarding the use of limit orders and have the patience to wait on trade to have its position ignited, the USD/PKR may be the forex pair missing from your arsenal. The USD/PKR has been within the grasp of a long term bullish trend and this has not shown any real sign of relenting, but the forex pair’s trading since late August has established a lower value range, albeit a still dangerous one.
The USD/PKR can certainly break through resistance and try to retest highs near the 168.5000 level. A trader could try to buy the USD/PKR now and try to speculate that a move higher from its current price action near 166.2000 will produce another leg up. But why risk this speculation when technically the USD/PKR has consistently shown it wants to fall back to the 165.5000 regions the past few weeks.
Yes, a speculator could gamble and try to use sell the USD/PKR at the current levels and seek the downward move to support too. However, the best trade may be the patient one. Simply waiting for the USD/PKR to hit support again, having a limit order in place to buy the forex pair near 165.5000 and have a proper stop-loss order in place and a take profit positioned near 166.2000 until proven otherwise. Trade the USD/PKR and watch it behave like a game of high & low.
Traders should also check with their broker about their limit orders expiring, meaning they should ask how long their orders ‘work’ before they are canceled within the trading platform they are using.
Pakistani Rupee Short Term Outlook:
Current Resistance: 166.5000
Current Support: 165.5000
High Target: 167.0000
Low Target: 164.5000
