AUDCHF 4H Analysis: Bearish Divergence

AUDCHF's recent trend exhibits bullish behavior with prices achieving higher highs above the R1 monthly pivot, suggesting strength. However, beneath the surface, signs of caution emerge.

The Commodity Channel Index (CCI) displays lower highs, creating a bearish divergence against the price's higher highs. This divergence hints at weakening upward momentum, urging traders to stay vigilant.

Further signaling a potential shift, the Moving Average Convergence Divergence (MACD) teeters on a bearish crossover. Such a move could forecast a momentum downturn.

Additionally, an untouched monthly pivot at 0.58496 beckons, potentially drawing prices down in a correction.

Compounding the cautious outlook, the Relative Strength Index (RSI) retreats from overbought territory, aligning with indicators suggesting a cooling phase may be on the horizon.

In essence, while the bullish trend above the R1 pivot indicates strength, emerging signals from CCI, MACD, and RSI suggest a momentum shift, with a pullback to 0.58496 as a conceivable target. Traders should monitor these developments closely and adjust strategies accordingly.

Trade active:

looks like we're half way there ...

Trade closed: target reached:

Target hit on April 16th 💪 :-)