USD / ARS remains stuck in a powerful uptrend that has shown no signs of creating a lasting downside reversal.
The USD / ARS is in an uptrend and its ability to maintain a bullish stature is nothing to be proud of for the Argentine government. The empty promises of better days ahead for the nation from its leaders and the statistical evidence that nearly 40% of the population now lives below the poverty line are dire realities.
The USD / ARS continues to rise as the official government exchange rate is choppy every week. Exchanging the Argentine peso for the US dollar on the streets of Buenos Aires remains where many citizens of the country try to trade the Forex pair, as the unofficial market value is almost twice as high.
Further evidence that the government is reluctant to let go of the reins of its bad policies was presented last month, when the government suddenly changed the rules on how much currency-denominated bonds traders in Argentina could buy. This was seen as yet another move by Argentina’s leaders as an attempt to limit other methods of USD / ARS trading. Some optimists continue to speak of an economic recovery and a return to growth in the country, but quantified evidence of better results remains difficult to produce.
Traders who want to buy USD / ARS are making the right decision. If a trader can buy USD / ARS on their trading platforms as a speculative bet, they must have time parameters in mind. USD / ARS does not offer bullish momentum on a daily basis, and downside reversals do occasionally occur. Stop losses should be widely discarded to allow for downward cyclical movements that are sometimes observed. However, while a trader can hold their buy positions and the overnight shipping costs aren’t huge, buying USD / ARS is still the practical bet.
The USD / ARS is unlikely to suddenly develop a prolonged bear cycle. The 30e In June, the USD / ARS showed a sharp bearish peak, but quickly reversed to return to a “normal” level. Currently, the USD / ARS is crossing above the 97,000 junction and buyers undoubtedly have top targets of 97,100 and above as legitimate higher targets. The real battle for speculators within this pair is duration, transaction costs, and protection of the trade from occasional lower spikes. Cautious traders should use careful leverage.
Short-term outlook for the Argentine peso:
Current resistance: 97,100
Current support: 96,950
High Target: 97,300
Low target: 96,750