USD/PKR Analysis Today 12/12: Trends Higher (Chart)

(MENAFN- Daily Forex) A slight rise of the USD/PRK has been seen since yesterday as the currency pair has begun to show signs of moving away from near-term support levels.

The USD/PKR has experienced a rather intriguing few months of trading taking into consideration while most other major currencies lost value against the USD, the currency pair has been able to demonstrate a timid amount of bearishness since the second week of September. However, before traders unfamiliar with the Pakistan Rupee come to the conclusion the currency is performing remarkably well, they should acknowledge that the State Bank of Pakistan controls the value of the PKR with an ultra-firm grip.

On the 5th of September the USD/PKR was trading near the 278.7750 mark, depending on the bid and ask available, and as of today's writing the currency pair is around 277.9175. The difference in price is not large but the ability to produce downwards movements the past few months doesn't correlate to the broad Forex market. And that is the point, the USD/PKR seldom correlates to global Forex.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Sudden Slight Advance Higher in the USD/PRK

The ability of the USD/PKR to attain higher ground the past couple of days needs to be treated carefully by speculators if they are able to pursue the currency pair on a brokers platform. The slightly higher prices may in fact be a way to wager on the potential of downside movement. The 278.0000 level appears to be a key focus for resistance, but it must be pointed out that on occasion since the 20th of September a few outliers higher have been seen.

Traders who make the decision to wager on the USD/PKR likely feel they have insights about the Pakistan Rupee that most do not, or they are gamblers. The ability to speculate on the USD/PKR is interesting because of the rather consistent support and resistance levels which are demonstrated, but technically the ratios can prove to be vulnerable. Even if the State Bank of Pakistan wants to control the value of their currency, there still are fluctuations and reversals that are seen on the USD/PKR

Again, choosing to trade the USD/PKR should be done with careful consideration. The currency pair moves rather slow, has very limited volume, and the spreads being displayed of bid and ask differentials is wide. Traders who are in pursuit of the currency pair need to use entry orders and have a strict game plan regarding targets.

• The recent upside in the USD/PKR is not because of economic data from the U.S, nor is it because of behavioral sentiment regarding President-elect Trump, it is because the State Bank of Pakistan has allowed the currency pair to move slightly higher.
• Traders should watch the 278.0000 resistance level, if it somehow gets penetrated higher in the short or near-term and shows the ability to sustain value above, this would be of interest.
• Until then, looking for reversals lower off of this vicinity may be the best wager.

Pakistani Rupee Short Term Outlook:

Current Resistance: 277.9650

Current Support: 277.8700

High Target: 278.0010

Low Target: 277.8400

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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