Hey traders 👋
NZDUSD is currently flashing some solid bearish signals on the 4H chart, and it's time to pay attention if you haven't already. Let's break it down.
🔍 Bearish Divergence in Play
On the surface, price action has been making higher highs — classic bullish behavior, right? But here's the catch: the RSI isn't playing along. Instead of confirming the higher highs with its own strength, it's diverging, making lower highs while price pushes up. That’s a textbook bearish divergence — and it’s one of those signals that tends to play out more often than not.
This kind of divergence hints at momentum exhaustion, which means bulls might be losing steam, and bears could be waiting to take over. Always worth a second look.
☕ Bearish Cup & Handle – Not Your Morning Brew
Another piece of the puzzle: the price structure is starting to carve out a bearish cup and handle pattern. While the bullish version is a continuation setup, the bearish one flips the script.
We’ve got a nice rounded top forming the “cup,” which signals distribution rather than accumulation.
The “handle” is forming as a short-term consolidation or a weak push higher — but volume is drying up, and there’s no real conviction in the move.
When this type of pattern forms after an uptrend or during exhaustion phases, it often leads to a downside breakout, giving bears the upper hand.
💡 Overall Outlook
With momentum fading, RSI divergence, and a bearish pattern all lining up, this setup looks like a potential swing short opportunity. Of course, confirmation is key — always wait for that break before diving in.
No need to chase — let the chart come to you.
📌 Trade Smart, Stay Sharp.
Let me know what you're seeing on this pair. Are you eyeing the same pattern or do you have a different take?
#NZDUSD #Forex #TechnicalAnalysis #BearishDivergence #CupAndHandle #4HChart #PriceAction #RSI #ForexTrader #SwingTrading
NZDUSD is currently flashing some solid bearish signals on the 4H chart, and it's time to pay attention if you haven't already. Let's break it down.
🔍 Bearish Divergence in Play
On the surface, price action has been making higher highs — classic bullish behavior, right? But here's the catch: the RSI isn't playing along. Instead of confirming the higher highs with its own strength, it's diverging, making lower highs while price pushes up. That’s a textbook bearish divergence — and it’s one of those signals that tends to play out more often than not.
This kind of divergence hints at momentum exhaustion, which means bulls might be losing steam, and bears could be waiting to take over. Always worth a second look.
☕ Bearish Cup & Handle – Not Your Morning Brew
Another piece of the puzzle: the price structure is starting to carve out a bearish cup and handle pattern. While the bullish version is a continuation setup, the bearish one flips the script.
We’ve got a nice rounded top forming the “cup,” which signals distribution rather than accumulation.
The “handle” is forming as a short-term consolidation or a weak push higher — but volume is drying up, and there’s no real conviction in the move.
When this type of pattern forms after an uptrend or during exhaustion phases, it often leads to a downside breakout, giving bears the upper hand.
💡 Overall Outlook
With momentum fading, RSI divergence, and a bearish pattern all lining up, this setup looks like a potential swing short opportunity. Of course, confirmation is key — always wait for that break before diving in.
No need to chase — let the chart come to you.
📌 Trade Smart, Stay Sharp.
Let me know what you're seeing on this pair. Are you eyeing the same pattern or do you have a different take?
#NZDUSD #Forex #TechnicalAnalysis #BearishDivergence #CupAndHandle #4HChart #PriceAction #RSI #ForexTrader #SwingTrading
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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.