Taking a step back and observing AUD USD on the weekly chart we can see a very strong rejection. This bearish engulfing signal (highlighted in green) is a clear short signal coming from a weekly supply level - which also happens to be the most recent weekly lower low.
Taking into consideration we have a weekly downtrend, a break of a major level, a retest and a rejection of this major level which also coincides with our last lower low/supply zone, and support of continued downward movement on the daily and 4 hour.
This analysis is based market structure and price action. Rules have been met, now the hard part where most can interfere and ruin a good setup, we set and forget. Personally I will be monitoring the 4 hour chart to get an ideal entry position.
Taking into consideration we have a weekly downtrend, a break of a major level, a retest and a rejection of this major level which also coincides with our last lower low/supply zone, and support of continued downward movement on the daily and 4 hour.
This analysis is based market structure and price action. Rules have been met, now the hard part where most can interfere and ruin a good setup, we set and forget. Personally I will be monitoring the 4 hour chart to get an ideal entry position.