AUD/CAD – Reversal Setup Watch (4H Chart)

AUD/CAD just made a strong move down, but instead of reacting, I’m observing the chart closely for a possible divergent reversal setup. This is not a trade entry—this is a watchlist note based on what would qualify as a potential long.

Key Conditions I'm Watching For

✅ Momentum divergence developing—momentum is high but starting to tilt downward

✅ Rejection pattern such as:

A hammer candle

Multiple failed attempts to go lower

Strong wick showing price rejection

✅ Volume must be at least 75+ to validate the shift

✅ Structure must align with the idea—price should show hesitation at the lows, not continuation

Chart Notes

This chart currently shows:

2 documented losses—included for transparency and improvement (1 provided a valuable lesson to be applied in all future trades)

Final Thoughts

This is a high-potential scenario developing, not a confirmation to enter. My strategy requires multiple layers of alignment before committing to any trade. I’ll continue monitoring this pair for a setup that meets all conditions.

If it comes, I’ll be ready. If not, I wait.