The USD/ARS continues to be a forex pair with a seemingly one-way direction. The Argentine Peso is a dangerous currency to trade because it faces the tumult of political, financial, and historical challenges which does not paint a rosy picture for its future. If traders want to amuse themselves they should take a look at a one year technical chart with candlesticks for the USD/ARS, the chart literally looks like an arrow pointing straight up. The value lost for the ARS does not allow the Argentinian people to rest comfortably if they need to use their national currency to pay bills on a daily basis.
While the government of Argentina tries to put controls on money exchange in their nation, what they in fact have set off is a large scale black market in which retail shops such as shoe stores suddenly emerge as a place to buy US Dollars. The population of Argentina has seen many trials of currency devaluations before and what is taking place in the nation should not come as a major surprise. The question which needs to be addressed is how the bleeding can be put to a stop? Unfortunately, the current government is not seen as a friendly free market entity and because of its earned reputation as a political power that favors populism and acts with less transparency then wanted; the Argentine Peso continues to get hammered via its exchange rate with the US Dollar.
If traders have an opportunity to buy the USD/ARS on forex platforms they may want to continue to explore the potential for a weaker Argentine Peso. Trading this week while maintaining some form of resistance up above, has developed another interesting support level short term which technical traders may be inclined to use. Support around the 69.20 short term may prove to be a worthwhile juncture, and if a trader is worried about volatility they may be inclined to put a stop loss at the 68.50 mark should a sudden burst of selling in the USD/ARS develop.
However, it appears that higher resistance still may be tested before support levels become a strong factor. A buy of the USD/ARS between 69.300 and 69.400 cannot be faulted with a goal of reaching targets near and above 70.000. The Argentine Peso continues to look weak.
Argentine Peso Short Term Outlook:
Current Resistance: 69.700
Current Support: 69.200
High Target: 72.000
Low Target: 68.500
