AUD/USD Forecast December 29, 2011, Technical Analysis

AUD/USD fell on Wednesday as the trading world moved to the bearish side in light volume. The pair did look a bit heavy as it approached 1.02, and the parity level looks like a magnet for this pair. The market is going to be sensitive to headline risk, and with so many negative headlines coming out of all parts of the world, we are selling the Aussie on rallies for short-term trades. The gap from 3 weekends ago still hasn’t been filled, and we expect it to be relatively soon.