Speculators need to continue pursuing upside momentum via the USD/ARS. The forex pair has demonstrated a solid bullish trend which is not about to vanish anytime soon, unless a change in overall government policy were to suddenly take place. To give new traders to the USD/ARS an idea regarding the move higher within the USD/ARS, it is recommended that a five year chart of the forex pair is examined. Speculators should note the USD/ARS has essentially been within a bullish mode since April 2018.
Buying the USD/ARS isn’t the question I need to answer for traders. What needs to be shared is that risk management when trading the forex pair remains tactically important. Forex brokers have different rules on their platforms and if the opportunity to trade the USD/ARS is available that is a good start. Secondly, using a proper amounts of leverage, solid price limit orders so unworldly spikes do not wipe you out, and adequate take profits orders which are not too greedy are all needed.
This is pointed out because waiting for the USD/ARS to eventually hit 90.000 may seem like a logical choice by traders as the forex pair consistently delivers upside momentum. However, waiting for these breathtaking climbs in value to happen will not only incur expensive carrying charges overnight which can prove costly, but it will also mean you are not protecting profits and are letting them traverse virtually in your account which could abruptly vanish instead of turning them into cash.
Speculators who are new to the USD/ARS may also logically ask if they can make money selling the forex pair. The answer to this question is yes, but to accomplish this you might have to be quite lucky besides being extremely brave while wagering against a long term bullish trend. It would also likely mean the Argentina government acts in a manner which helps the economy of the nation, instead of using bandages on limbs for mere cuts, when in fact the bones are clearly broken.
Buying the USD/ARS is the logical choice for traders. Cautious traders can use limit orders below present market conditions and hope for pullbacks to ignite their long positions, but if a trader is too cautious and places their orders too far below present values they may never get filled.
Argentine Peso Short Term Outlook:
Current Resistance: 87.300
Current Support: 86.600
High Target: 87.500
Low Target: 86.250
