A UBS note nominates a breach of 1.0810 in EUR/USD as a trigger for Commodity Trading Advisors (CTAs) to shift into short positions.
- say its a key level of clustered CTA triggers, and three are more if the euro falls below there
UBS say that CTAs are already short kiwi $, Chinese yuan and yen.
A glance at the chart of EUR/USD shows that 1.0810 is a bit of a level, but is it really that critical to turn short? Looks like that ship has sailed IMO.
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A Commodity Trading Advisor (CTA) can be an organization or individual.
- provides advice and services related to trading in commodity futures contracts, commodity options, and other derivatives
- can also manage client portfolios entirely
- executing trades on behalf of clients
- consulting services (risk management and such)
CTA utilise various approaches including:
- fundamental analysis
- technical analysis
- quantitative methods
- or a combination
CTAs are regulated by the United States' Commodity Futures Trading Commission (CFTC)
- must also be registered with the National Futures Association (NFA) if operating in the U.S.