USDCAD – 4H Bullish Divergence Setting Up for a Potential Revers

USDCAD – 4H Bullish Divergence Setting Up for a Potential Reversal 🚀🔄
Hey traders 👋
USDCAD is flashing some early signs of a potential trend shift on the 4H chart, and it’s coming straight from one of the most reliable clues in technical analysis — bullish divergence. Let’s walk through it.

📈 Price Making Lower Lows, But RSI Isn’t
So here’s what’s happening: price action has been sliding lower, printing a series of lower lows — looks bearish on the surface, right? But when you peek under the hood and check out the RSI, you’ll notice something interesting.

The RSI is actually making higher lows during the same period. That’s classic bullish divergence, and it’s usually a sign that selling pressure is weakening, even if price hasn’t caught up to that idea yet.

Momentum is starting to shift, and the bulls may be loading up in the background.

🔍 What This Means
This setup tells us that while bears have been in control, they’re losing strength. Buyers are quietly stepping in, and if price confirms with a breakout or a structure shift — we might be looking at a solid reversal opportunity.

These divergences can often be the first clue before a full-blown reversal. Not something to trade blindly, but definitely something to prepare for.

💡 Watch For Confirmation
Look for structure breakouts (trendline cracks, minor resistance flips, etc.)

Volume rising on bullish candles = extra confidence

A strong bullish engulfing candle or a higher low can be a great signal to jump in

Patience is key here. Let the market show its hand, then act.

📌 The Setup Looks Promising – But Timing Is Everything.
Are you spotting the same divergence? Or waiting for more signs before stepping in?

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