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.