Price velocity intensifies as speculation hits
USD / PKR continues to record new highs as bullish momentum increases and yesterday’s price velocity shows signs of speculation.
USD / PKR is trading above 172.0000 as of this writing, and the possibility that speculative elements are now having an effect on the Forex pair as technical weakness is demonstrated is likely as institutions financial become nervous. USD / PKR moved from a low of around 170.9900 yesterday to a high of 172.1400 where the pair is now crossing.
The 20e In September, the USD / PKR was trading essentially near the 167.5000 mark and saw a sincere bullish move upward. If a three month chart is entertained by traders, they will see that the USD / PKR was trading near the 159.8000 ratio on the 19th.e July.
Speculators looking for a sudden downward USD / PKR reversal should not be looking for large moves and their take profit orders should work to exit the market when their targets have been met. Yes, the USD / PKR was trading near the 171.0000 mark on the 6the October, then traded near 170.0000 on the 14e, but these minor downside reversals are frequently hit by more robust upward moves, ultimately setting a new high, which happened yesterday.
USD / PKR resistance currently appears to be at 172.2000. As always, traders who decide to sue the Pakistani rupee should consider the transaction costs when betting on the USD / PKR. Because the trend is rather strong in one direction, one of the stumbling blocks for traders may be due to a higher transaction cost for trading the Forex pair.
The overnight charges for shipping and the large spread in the USD / PKR sometimes make it difficult to exit a position when needed. This means that if you are holding a USD / PKR and suddenly need to exit the position for any reason which may be one of many, your price fill may suffer as the gap between supply and demand in the pair is not where you want it to be and can prove to be expensive.
Buying the USD / PKR remains the ideal solution to bet on the pair. The use of prudent leverage should be practiced; entry orders must have an exact price that they wish to be executed. Short term USD / PKR support appears to be the 171.9000 area. If this ratio is maintained, higher movements can develop and new highs can be reached in the short term.
Pakistani Rupee Short Term Outlook
Current resistance: 172.2000
Current support: 171.9000
High Target: 172.5000
Low target: 171.1600