USDCAD – Potential Short Setup After Retest of Supply Zone

After a strong bearish impulse, the price has retraced back toward a previously broken structure that now aligns with a supply zone (highlighted in purple).
This area has acted as a strong support in the past and could now serve as resistance after the recent breakdown.

Currently, the market is showing a corrective move to the upside, likely to mitigate orders before the next bearish leg.
If price shows rejection signs such as bearish engulfing or lower-timeframe structure shift within this purple zone, I’ll be looking for short opportunities.

Trade Plan:
🔹 Entry: After confirmation of rejection within the purple zone
🔹 Stop Loss: Above the zone’s upper boundary or recent swing high
🔹 Take Profit 1: near 1.3986
🔹 Take Profit 2: Extension toward 1.3964

Bias:
📉 Bearish continuation after corrective pullback to the supply zone.

Market Logic:
The bearish momentum remains dominant, and the corrective structure suggests distribution before continuation. I’ll wait for confirmation before executing the short position.