(MENAFN- Daily Forex)
While the USD has gained against most major currencies in Forex, the USD/PKR has actually turned in a rather fascinating move lower. No, the incremental selling of the USD/PKR has not been done with any monumental force or price velocity, but from a technical perspective over the past week, month, and particularly with a three month chart it is clear the currency pair has moved fractionally lower.
Particularly intriguing about the slow move lower this week is that it has been accomplished as most other currencies teamed versus the USD have lost value. The Pakistan government has effectively shown that it is 'pegging' the value of the Rupee with a solid grip. Speculators who are interested in trading the USD/PKR on a daily basis need to use extremely well defined risk taking tactics , this to wager on the currency pair effectively. The current market rate show for the USD/PRK is 0564 and Knowledge a Key for USD/PKR Speculation
While day traders may believe it is alright to gamble on the USD/PKR using entry prices and defined stop loss and take profit targets, they also need to judge the amount of leverage they are using to wager on the currency pair. Another potential scenario may be that speculators of the USD/PKR are pursuing long-term positions and are able to absorb transaction fees charged by their brokers.
However, no matter if the USD/PKR position taken is a short or long-term bet, the acknowledgement that pursuing the currency pair is gambling is important. Unless the trader happens to have 'inside' knowledge about what the Pakistan government wants to do regarding its official exchange peg with the USD.
Forex Brokers We Recommend in Your Region See full brokers list 1 Read full review Get Started U.S Economic Data Today and its Potential Non-Importance for the USD/PKR
The U.S will release very important GDP data today which will offer statistics on growth and inflation. Yet, it is questionable what type of impact the results from the U.S will have on the USD/PKR, because the currency pair has not moved in a correlated manner with the rest of the broad Forex market the past few months. While the USD/PKR has actually produced a small steady incremental bearish trend per technical charts, the USD has gotten stronger in many cases against other currencies – that is a warning sign.
Traders who want to wager on the USD/PKR and continue to look for potential moves lower should consider selling the currency pair near technical resistance levels . Patience will be needed when trying to trade the USD/PKR and technical skill is a must for speculators. Entry price, stop loss and take profit orders must be used with a broker that allows you to trade the currency pair.
Pakistani Rupee Short Term Outlook:
Current Resistance: 278.0800
Current Support: 278.0240
High Target: 278.2490
Low Target: 277.8000
Ready to trade our Forex daily analysis and predictions ? Here are the best Pakistan trading brokers to choose from.
MENAFN28032024000131011023ID1108034015
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.