AUD/USD Technical Analysis (4-Hour Timeframe)AUD/USDOANDA:AUDUSDAsif_Iqbal_chaudharyThe AUD/USD 4-hour chart is showing signs of a potential bullish reversal as multiple technical factors are beginning to align. One of the strongest observations is the Bullish RSI Divergence. While price continued to print lower lows, the RSI formed higher lows, indicating that bearish momentum is fading and buyers are gradually stepping into the market. This divergence often acts as an early warning of a possible trend reversal. At the same time, price is approaching the descending trendline that has capped every rally during the recent downtrend. A successful breakout above this trendline would provide additional confirmation that market sentiment is shifting in favor of the bulls. It's also worth noting that the previous support around 0.6980 has now turned into resistance, making it the first major hurdle that buyers need to overcome before a stronger bullish continuation can develop. 📈 Bullish Scenario The Bullish RSI Divergence suggests selling pressure is weakening. A confirmed breakout above the descending trendline would strengthen the bullish outlook. Aggressive traders may consider entering on the breakout. Conservative traders should wait for a 4-hour candle to close above the trendline or a successful retest before entering. 🎯 Upside Targets Target 1: 0.70373 Target 2: 0.70809 Target 3: 0.71150 (next major resistance) 🛑 Risk Scenario If price fails to break above the descending trendline and loses the 0.6900 demand zone, bullish momentum may weaken and the pair could revisit the lower support around 0.6840–0.6850. 📋 Trading Plan ✅ Entry: After a confirmed breakout and candle close above the descending trendline. ✅ Alternative Entry: Wait for a breakout followed by a bullish retest of the broken trendline. 🛑 Stop Loss: Below the recent swing low or according to your risk management. 🎯 Targets: 0.70373 → 0.70809 → 0.71150 "Bullish divergence doesn't guarantee a reversal—it signals that momentum is changing. Confirmation is what turns probability into opportunity." 💬 If you found this analysis helpful or relatable, I'd really appreciate your support. Share your thoughts in the comments and let me know whether you agree with this setup or see a different perspective.