NZDCAD – Short-Term Bullish Setup (1H Divergence)✅ Key Observations:
Timeframe: 1 Hour
Signal: Bullish Divergence
Bias: Short-term bullish, possibly within a larger corrective structure
🔍 Technical Confluences:
Bullish Divergence on RSI or MACD:
Price made a lower low, while oscillator made a higher low – signaling weakening bearish momentum.
Possible Support Area:
Near a recent demand zone
May coincide with a minor trendline or Fibonacci level
Candle Structure:
Look for a bullish engulfing or pin bar to confirm reversal
📈 Trade Plan – LONG Position
Entry:
Buy after confirmation candle forms (bullish candle closing above previous one)
Or after a minor resistance break (micro-structure shift)
Stop Loss:
Just below the swing low where divergence formed
Take-Profit (Short-Term):
TP1: Nearest resistance level / recent high
TP2 (optional): Fib 0.618 retracement of the previous bearish move
Risk-to-Reward: Target at least 1:1.5 or 1:2
⚠️ Watch For:
A pullback before the full move starts – don't chase the first green candle blindly
If price makes a lower low with no divergence, re-evaluate the setup
