AUD/USD Technical Analysis October 26, 2011

AUD/USD fell during the Tuesday session after trying to break through the 1.05 level. The area is significant resistance, and showed it during the session. With the issues in Europe taking the headlines, this pair will certainly be controlled by what happens in Brussels, not Sydney. With this in mind, we like selling this pair if the markets in general get bearish because of the EU meeting today. The markets look like they may be overbought in the “Risk On” trade, and as such, we think the path of least resistance is down. Signs of weakness are to be sold.

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