AUD/USD continues to trade bearishly – threatening the 0.8819 support level once again

FXstreet.com (Barcelona) - The AUD/USD has been tumbling over the last several sessions and has continued to do so early on Monday as blatant dovishness by the RBA has combined with FOMC tapering talk / action to weigh on the cross.

AUD/USD traders looking for guidance from light data schedule this week

The data points that may have a material impact on the AUD/USD cross this week include:

• Monday – US Pending Home Sales; US Dallas Fed Manufacturing Index
• Tuesday – Aussie Private Sector Credit; US Chicago Purchasing Managers Index; US Consumer Confidence
• Wednesday – New Years Day holiday
• Thursday – Aussie Performance of Manufacturing Index; US PMI; US Weekly Jobless Claims; US Construction Spending; US Prices Paid
• Friday – US ISM New York Index

Technical outlook for AUD/USD

Technicians say the AUD/USD is still in a very pronounced downtrend but that third wave (using Elliott Wave jargon) targets have been met and that a fourth wave bounce may be under way. If that is the case, they say the minimum upside target will be 0.8990 and the maximum upside target would be 0.9266. In the shorter-term, support comes in at the recent lows at 0.8819 and resistance comes in at the 12/23 intraday high of 0.8957.