AUD/USD had originally fallen on Friday, only to bounce again and form a hammer in a very supportive manner just above the obvious parity support level. The recent consolidation has focused on the 1.03 level, which has acted like a magnet for price and it looks like this could continue. We think that the global headwinds could continue, and the upside in this “risk on” pair should be somewhat limited. Because of this, we are willing to sell the rallies as long as we stay under the 1.05 level. The gap from two weekends ago still needs filled, and should be fairly soon.