You have a broken hose or a blown seal in the steering system.
No, it does not.
The power steering reservoir is underneath the alternator by the firewall.
Yes, ATF is the proper power steering fluid for that vehicle.
The Power steering pump is located underneath where you put the power steering fluid.
The pump pressurizes the power steering fluid. The fluid travels through the steering rack or steering box to aid in the making the vehicle steer easier.
On a 1998 Mercury Tracer : The power steering fluid reservoir is at the front of the engine compartment towards the passenger side < of the vehicle ( when looking from the FRONT of the vehicle , the power steering fluid reservoir is the reservoir on the RIGHT )
Underneath the drivers seat
Underneath the battery compartment under the hood.
Yes. Power steering fluids are interchangeable.
The power steering fluid of choice by Ford engineers for your vehicle year is straight mercon 5 transmission fluid.
Underneath the air intake tube on the right hand side (driver's side) facing the vehicle. Detach the plastic tube, and you will see the the reservoir.
It is important to maintain the fluid levels of a vehicle. A person adds power steering fluid for this car into the power steering reservoir under the hood under the lid labeled power steering.