The old saying what goes up must come down may not apply to the Argentine Peso. The USD/ARS continues to be plagued by poor government economic policy in Argentina, investors who do not believe what they are being told by officials and citizens who would rather risk police charges than try to hold onto their national currency.
The USD/ARS continues to plow through resistance levels and traverse higher. Speculators who are allowed by their forex platforms to hold onto their positions and are not burdened with huge carry charge fees overnight, should pursue the bullish momentum and using trailing stop losses which the trader should raise incrementally as the USD/ARS continues to go berserk.
While there is seldom justification to say trading is a one way avenue, buying the USD/ARS and participating in its surge higher remains a relatively easy choice for speculators with the capability to trade the forex pair. Support levels certainly exist and downward momentum can be generated, but if a strong dose of selling were to be displayed within the USD/ARS it would be met with very skeptical opinions. The Argentine government is doing very little to make friends in the world of finance and commerce. Domestically and internationally Argentina is viewed as a poor place to invest because of the heightened level of distrust its government has fostered.
While the USD/ARS trades within sight of the 78.200 vicinity according to official Argentina government exchange rates, the unofficial black market rate on the street is said to be at least double this value and higher. The Argentine government faces difficult choices ahead and it may be considering a massive devaluation to the Argentina Peso which would turn the forex market upside down. However, speculator should continue to pursue upside momentum when they have the opportunity to buy the USD/ARS.
In order to profitably participate in the USD/ARS traders need to make sure they understand the policy their forex brokers have when speculating on this forex pair. Speculators need to use their leverage wisely and not become too greedy. Government action could cause a massive upheaval within the USD/ARS via devaluation, but this does not seem to be a short term threat. Buying the USD/ARS with limit orders and seeking upside price movement remains attractive.
Argentine Peso Short Term Outlook:
Current Resistance: 78.250
Current Support: 77.900
High Target: 78.500
Low Target: 77.550
