The Pakistani Rupee touched vital resistance in early trading today and its overall trend appears weak as the currency continues to loss value to the US Dollar. Resistance levels of 168.0000 are being targeted and speculators who believe the current trend of the USD/PKR remains a buying opportunity may seek further upside for the US Dollar. From a technical viewpoint, further erosion in value from the Pakistani Rupee is an open playing field with potential. The USD/PKR would enter a new realm of technical weakness for the Pakistani Rupee should it continue to bleed.
Resistance proved capable of causing a reversal for the USD/PKR earlier today and the forex pair is trading between values of 167.5000 and 168.0000. Speculators need to keep in mind the Pakistani Rupee is not a high volume trading vehicle within forex and sudden volatility can emerge at a moment’s notice. However, the trend demonstrating a weaker Pakistani Rupee is apparent, and since late May the USD/PKR has gone from a price near 160.0000 to its weaker value of today.
Traders, who are tempted technically to sell positions of the USD/PKR and seek better values for the Pakistani Rupee, may be able to make a point when pointing at charts. However, the old adage that the trend is your friend should be taken into account seriously by speculators of the USD/PKR and they should remain hesitant about wagering against the weakness the Pakistani Rupee has provided.
Pakistan is a nation that does trade internationally, but its economic health is reliant on political factors which appear troublesome. While the nation maintains some transparency regarding its government spending, the nation’s current budget woes are a growing concern. Also, Pakistan’s reliance on China as a trading partner is proving burdensome as concerns about the implications of coronavirus and its effects hammer the economic domain.
The USD/PKR appears to be a very speculative buying opportunity still for traders with the fortitude and stamina to further test the weak values of the Pakistani Rupee. Traded may be tempted to buy the USD/PKR with carefully selected entry points near the 167.0000 to 167.5000 level, while using nearby stop losses to protect against possible bursts from reversals.
Pakistani Rupee Short Term Outlook:
Current Resistance: 168.2000
Current Support: 166.5000
High Target: 169.0000
Low Target: 165.5000
