AUD/USD shorting plan

FX:AUDUSD   Australian Dollar / U.S. Dollar
Looking at the AUD/USD 2H chart, we can see the market has a very clear structure, with a recurring technical pattern for us to utilize. The overall market structure is that of a descending channel , meaning we are looking to short the market. Looking at previous swings highs (which were good shorting opportunities), we can see that each one involved 4 technical factors:
1. price trading at the upper channel descending line
2. stochastic at overbought or near overbought levels
3. price trading above the 20 EMA
4. price trading at the 50-61.8% of the previous down move

The AUD/USD is currently trading at the lower channel point, with a low stochastic reading, below the 20 EMA . Therefore, our plan of action is simple rule following, looking for another technical confluence of the above mentioned kind. If the AUD/USD bounces back and fulfills our conditions, we're with-the-trend sellers.


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