USD/CAD Price Analysis: Bears taking on critical weekly support, eyes on 1.2850

• USD/CAD is within the bear's lair while below 1.2960, 1.2935.
• The price is in the process of forming an M-formation on the 4-hour chart.

USD/CAD has been melting to the downside following the bull's capitulation out of a rising trend from 1.3060s resistance. The following illustrates the bearish bias on the 4-hour chart:

USD/CAD H4 chart

The price rallied into a well-respected resistance zone and has been in the hands of the bears since the start of this week. The market left behind a harmonic pattern in the same time frame and we are seeing a series of lower lows:

Crucially, the price has broken a key support area, the neckline of the harmonic pattern near 1.2935. The price is retesting this as resistance and a little higher, near 1.2960. If these structures hold, then the bears will strap in for an accelerated move to the downside to challenge below key support of 1.2895 to target 50 pips lower.

However, the weekly W-formation's neckline is an obstacle: