USD/PKR Analysis Today - 23/05: Patience In Trading (Chart)
Date
5/23/2024 2:51:48 PM
(MENAFN- Daily Forex) Speculators looking for volatile price action in the USD/PKR are likely looking in the wrong place, in order to trade the currency pair patience is an important virtue.
The USD/PKR as of this writing is near the 278.1500 mark. The currency pair has maintained a tight price over the past week, in fact the past month has also produced a choke hold on action in the USD/PKR. This is not surprising since the State bank of Pakistan maintains a strong grip on the official rate of the currency pair.
Correlations with the USD are hard to determine particularly because transparency from government statistics in Pakistan are not easy accessible. Yet the USD/PKR does deliver enough price fluctuations for brokers to allow speculators a chance to wager on the currency pair. However, in order to accomplish a positive result in the USD/PKR takes a well-defined risk taking approach .Wagering on the USD/PKR in Short-Term Positions
In order to wager on the USD/PKR a trader has to accept that positions will likely need to be held for a couple of days in order that a chosen price target is touched and that a broker can cash the trade out of the market. While choosing direction of the USD/PKR is not going to be determined by an easily perceived technical trend, the rather tight price range does offer a window for wagers which look for conservative changes in value.
Traders looking for downside price action in the USD/PKR because the USD is now looked upon with a weaker USD centric attitude by global financial institutions may find it difficult to see a correlated move. However, the USD/PKR does occasionally move down. What might be better for patient traders to do is to wait for technical support and resistance levels to be hit to ignite positions which seek reversals. Yet, to do this a trader will likely have to use a working day order which has a determined price objective to ignite the trade and hope the broker gets you into the USD/PKR properly.
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Waiting Out the Moves in the USD/PKR
After an order has been filled per the entry level, then a trader will have to initiate a take profit and stop loss order and then wait for market direction to propel the wager. Speculating on the USD/PKR needs patience and the ability to emotionally handle the lack of movement which sometimes occurs in the currency pair.
Some deep pocketed traders with experience may also want to place their stop losses further away from the USD/PKR market price, so they are not bounced out of a trade if things go against them with a move that was not anticipated.
This because the USD/PKR does have a tendency to reverse and 'fix' itself when the State Bank of Pakistan determines the rate.
Pakistani Rupee Short Term Outlook:
Current Resistance: 278.2075
Current Support: 278.1300
High Target: 278.2800
Low Target: 278.0410
Ready to trade our daily Forex forecast ? Here's a list of some of the top forex brokers in Pakistan to check out.
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