The rally from mid-October from 0.6170 probably peaked at 0.7158 last Thursday following the twin rate hikes by the Bank of England and the European Central Bank by 50 basis points.
Since them, AUD/USD has been declining and this afternoon in Europe hit a low at 0.6856 before rebounding somewhat. The idea is to position shorts as this market rebounds, ideally towards 0.7025 -0.7056 (see chart).
This is because the next decline could theoretically extends 1.618 times from whatever top the current rebound peaks at to.below 0.6585.
#1 Sell Limit @ 0.7025. Amended to 0.7005 Wed, Feb 8, 14:22pm. Order Filled @ 0.7005 Thu, Feb 9, 21:15pm.
#2 Sell Limit @ 0.7055. Amended to 0.7040 Wed, Feb 8, 14:22pm. Order Cancelled. Fri, Feb 10, 13:20pm.
Stop @ 0.7165. Moved to 0.7005 Fri, Feb 10, 13:20pm