The USD/ARS continues to exert a strong amount of bullish momentum as the Argentine peso’s perpetual bleeding remains constant.
The USD/ARS is now trading within sight, but below the 94.000 mark, per its official Forex rates via the supervision of the Argentine government. Traders who are able to buy the USD/ARS and wager on its speculative move higher have reasons to celebrate if their brokers offer them an opportunity to participate in the Forex pair. It most likely isn’t the movement of the USD/ARS that is the most dangerous thing for speculators to monitor; it is the cost of transactions, including potential carry charges for positions held overnight that can become troublesome.
The government of Argentina continues to operate within a state of denial regarding the economic saga which confronts its nation. Inflation remains difficult and above the forecasted statistics from government offices. The black market remains vibrant regarding its ability to deliver almost twice the amount of value for patrons exchanging dollars for pesos. Topping off the situation is the ongoing talks with the International Monetary Fund that faces significant hurdles as Argentina begs for a re-working of past loan requirements regarding payments.
Economic Minister Guzman traveled to Europe recently and reports indicate he met with financial leaders within Europe and apparently asked them for support as Argentina tries to negotiate with the IMF. However, intriguingly, Guzman also pointed out that he met with Pope Francis to discuss the situation and economic crisis Argentina is confronting. All jokes aside, Argentina could use the help of the heavens regarding its current economic predicament. Or, Argentina could actually enact effective government policies, which would help stem the slide into fiscal chaos, but that is unlikely because it is easier to blame past governments and bad luck.
Technically, the USD/ARS remains within the grasp of a steady incremental climb. Traders should use limit orders to buy the USD/ARS to make sure they protect themselves against unwieldy price fills. Support levels may be demonstrated and, yes, traders should protect themselves against periodic reversals lower, which do happen on occasion. However, the USD/ARS remains a screaming buy and, if a speculator can manage their leverage, costs of overnight positions and has the patience to chase the bullish momentum, it might turn out to be a solid wager.
Argentine Peso Short-Term Outlook:
Current Resistance: 93.800
Current Support: 93.360
High Target: 94.000
Low Target: 93.250