AUDCAD – Bearish Divergence on 1H & 4H Charts 🐻⚠️ Multi-Timeframe Confluence
Hey traders 👋
AUDCAD is showing bearish divergence across both 1H and 4H timeframes, and that’s not something we brush off lightly. When multiple timeframes agree, it’s often a high-probability signal — let’s break it down.
🔻 1H Divergence – Momentum Cracks Appearing
On the 1-hour chart, price has been grinding higher, forming a series of higher highs — but here’s the catch: RSI is printing lower highs.
That’s bearish divergence in its purest form. Momentum is clearly not confirming the new highs, meaning the bulls are pushing, but not with strength. It's a sign of buyer exhaustion — and potentially, a trap for late longs.
⏳ 4H Divergence – A Bigger Picture Warning
Zooming out to the 4-hour chart, the same divergence is present. Price keeps nudging higher, but the RSI continues to lag behind. This isn’t just noise — it’s a red flag.
Divergence on the 4H chart means we could be due for a larger correction or even a reversal, not just a quick dip. Add that to the 1H signal and you've got a bearish confluence.
📌 What to Watch
A break of short-term support could confirm the divergence playing out
Lower highs forming after divergence = strong entry signals
Bearish engulfing candle or trendline break = go-time for many traders
Be patient — wait for structure to break before committing. This isn’t about guessing; it’s about letting price action do the talking.
🎯 Final Thoughts
With divergence across 1H and 4H, the setup is solid. Momentum is fading, and a shift could be just around the corner. Whether you’re day trading or looking for a swing entry, this is prime time to watch AUDCAD closely.
Hey traders 👋
AUDCAD is showing bearish divergence across both 1H and 4H timeframes, and that’s not something we brush off lightly. When multiple timeframes agree, it’s often a high-probability signal — let’s break it down.
🔻 1H Divergence – Momentum Cracks Appearing
On the 1-hour chart, price has been grinding higher, forming a series of higher highs — but here’s the catch: RSI is printing lower highs.
That’s bearish divergence in its purest form. Momentum is clearly not confirming the new highs, meaning the bulls are pushing, but not with strength. It's a sign of buyer exhaustion — and potentially, a trap for late longs.
⏳ 4H Divergence – A Bigger Picture Warning
Zooming out to the 4-hour chart, the same divergence is present. Price keeps nudging higher, but the RSI continues to lag behind. This isn’t just noise — it’s a red flag.
Divergence on the 4H chart means we could be due for a larger correction or even a reversal, not just a quick dip. Add that to the 1H signal and you've got a bearish confluence.
📌 What to Watch
A break of short-term support could confirm the divergence playing out
Lower highs forming after divergence = strong entry signals
Bearish engulfing candle or trendline break = go-time for many traders
Be patient — wait for structure to break before committing. This isn’t about guessing; it’s about letting price action do the talking.
🎯 Final Thoughts
With divergence across 1H and 4H, the setup is solid. Momentum is fading, and a shift could be just around the corner. Whether you’re day trading or looking for a swing entry, this is prime time to watch AUDCAD closely.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.