The AUD/USD pair fell during much of the week, but got a bounce to form a hammer just above the parity level. This bounce shows that there could be massive buying of the Aussie as the “risk on” trade continues due to the situation in Europe being worked on. The markets are going into a relief rally mode, and as a result we see riskier currencies like the Aussie get bid up. The 1.05 area above does look a bit resistive though, so we don’t want to buy until we close over that level. Once that happens, we will be aiming for the 1.10 level. Selling isn’t possible until we close below the parity level.