AUD/USD Technical Analysis October 17, 2011

The AUD/USD pair had a wildly bullish session on Friday as traders bought this pair hand over fist. The “risk on” trade was the order of the day, but one cannot help but think this move has been a bit on the parabolic side. With that in mind, we are approaching serious resistance all the way up to the 1.05 mark. We would also be looking at the possibility of headline risk out of the EU and other places, and be a bit concerned about owning the Aussie. Until we can close on the daily chart above the 1.05 mark, we think buying isn’t an option at this point. In fact, we like selling bearish candles under 1.05 if we can get them.

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