August 3, 2022
  • August 3, 2022

High-end intact and bullish momentum remain

By on September 21, 2021 0

USD / PKR remains in the upper bounds of its upper range and bullish sentiment likely continues to be encouraged by speculators who like to bet on the currency pair.

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USD / PKR remains within the limits of its all-time highs and that is unlikely to change anytime soon. As of this writing, the USD / PKR is trading below the 169,000 level, but from September 15-16 the currency pair tested the 169.3000 level. Yes the USD / PKR did experience a slight downward reversal, but the decline did not break any major trends and speculators cannot be blamed for wanting to pursue price action on the higher side.

Granted, the USD / PKR may go down and traders who wish to pursue the currency pair are reminded not to bet their savings. Traders should understand that the USD / PKR does not have a gigantic volume and that large transactions by the Pakistani government and occasional financial institutions can create unexpected moves. Speculators should use entry point orders when betting on USD / PRK so that they do not receive unexpected prices, which can make their pursuit of a target more difficult.

Technically, the USD / PKR is clearly in the middle of yet another uptrend. Since May 11, the USD / PKR has moved from a low of near 151.8000 and gradually added value. The trend does not seem ready to end yet. Apart from the technical aspects of the USD / PKR which seems to see resistance spread on a rather stable timeline, fundamentals also play a role in the bullish momentum of the currency pair.

In addition to suffering from a rather worrying economic situation, Pakistan may also be faced today with the prospect of a ripple effect of the potential growing financial worries in China. The short term looks worrisome and this can create tensions for financial institutions as they attempt to create a safe haven for their transactions, which means buying USD / PKR in order to hold USD instead of PKR.

The target of 169,000 as resistance appears to be a draw for speculators who can hold USD / PKR and bear the carry costs overnight. If a speculator can place a large stop loss, manage their leverage effectively and not be killed on transaction fees, the USD / PKR remains the worth bet for traders who have the desire and the ability to chase the pair. rather “exotic” currencies. Buying the USD / PKR below 169.0000 with entry orders and looking for more bullish price action seems like a logical move.

Pakistani Rupee Short Term Outlook:

Current Resistance: 169,000

Current support: 168.4000

High Target: 169.4000

Low target: 168.0000

USD / PKR