AUD/USD Forecast December 21, 2011, Technical Analysis

AUD/USD rose rapidly on Tuesday as the latest round of “risk on” suddenly came back to the markets. The Spanish managed to sell bonds at a decent rate for the session, and this got the market a bit overly excited. The move was more than likely helped by a lack of volume, and this will make the rally very suspect as the validity of it gets questioned. The 1.02 level above looks very resistive. The pair isn’t to be trusted as a bad headline can easily cause a move to the downside that would be just as rapid. We are selling rallies on weakness at this point.