USDCAD: Bearish Structure with Rejection from Key Supply Arrays

Greetings Traders,
In today’s analysis of USDCAD, recent price action confirms the presence of bearish institutional order flow. As a result, we aim to align ourselves with this directional bias by identifying strategic selling opportunities.

Key Observations:
Weekly Timeframe Insight:

Last week's candle rebalanced a weekly Fair Value Gap (FVG), indicating internal range price action. As a rule of thumb, once internal imbalances are addressed, the draw typically shifts toward external liquidity—located at the swing low, where the weekly liquidity pool resides.

H4 Resistance Alignment:
On the H4 timeframe, price shifted bearish and has since retraced into a bearish FVG that aligns precisely with a reclaimed bearish order block. The alignment of these bearish arrays strengthens the case for continued downside, making this zone a high-probability resistance area.

Trading Plan:
Entry Strategy:
Look for bearish confirmation setups on the M15 or lower timeframes within the H4 supply arrays (FVG + OB confluence).

Target Objective:
The primary draw on liquidity lies within the discount range—targeting the liquidity pool below the most recent swing low.

For a detailed market walkthrough and in-depth execution zones, be sure to watch this week’s Forex Market Breakdown: