I’ve just received a note from a hedge fund which specialises in medium-term technical-analysis-based trading strategies. Their signals are generated primarily through moving-average crossovers but they also look at fundamentals, market positioning etc.
They sold AUD/USD on Monday at .9985 and have added to the position this morning at .9959. They have a stop on the position at 1.0107. They will look to add below .9800 and their target is .9320.
I’ve had a look at my charts and it’s pretty obvious why the s/l is above 1.0100 (recent highs at 1.0085), why they’re adding below .9800 (break of recent lows) and the target rate is the 200-day MA. What I can’t seem to figure out is which MA crossover they are using but that of course is their proprietary information. If they get this one right, I’ll pay a lot closer attention next time.
