Argentina struggling with dark clouds
The USD / ARS continues to stretch and climb as its long term uptrend remains intact for speculators able to bet.
The USD / ARS continues to trade in an almost one-way direction as the long-term uptrend shows absolutely no signs of weakening. USD / ARS is trading well above the 94,600 level and the target of 96,700 is definitely the next step up. It is frankly not a question of whether the USD / ARG will eventually hit the 94,800 mark and above; it’s a question of when.
Argentina’s economy remains fueled by bad government policy, and adding misery to the situation is a social network disruption as people grapple with the implications of the coronavirus. Argentina is one of the largest nations and has one of the most romantic cities in the world in Buenos Aires, but the country appears to be on the verge of systemic collapse under the weight of economic and social crisis.
USD / ARS is a buy for speculators who can participate with the currency on their trading platforms. However, traders should understand that there are likely costs to participate in USD / ARS. These can include a fairly large price spread, transaction costs, and overnight carry costs, all of which need to be calculated with any prospect of continuing the uptrend of the USD / ARS, which is not. not about to disappear. The question for speculators is whether they can enter and exit winning trades quickly enough to keep potential costs to a minimum when pursuing the Forex pair.
Traders should use limit orders to buy USD / ARS, and profit-taking targets should be implemented as soon as positions are opened. Yes, traders should also have stop-losses in place, as there are slight reversals that manifest within the USD / ARS during the trading day. As much as the Forex pair has produced constant upward incremental movements, so there are sudden declines that occur from time to time.
However, the USD / ARS trend continues to be bullish, and it will take a significant shift in Argentina’s direction to change the negative momentum. If a speculator can buy the USD / ARS around 94.630-94.620, that could be a good thing, but more aggressive traders may just want to be buyers closer to current market prices and then let their trades run with a appropriate stop-loss and take-profit. the controls work.
Short-term outlook for the Argentine peso:
Current Resistance: 94,700
Current support: 94,610
High Target: 94,820
Low Target: 94.290