USD/CAD Price Analysis: Bears eye a break of key weekly support

• USD/CAD W-formation is compelling although bears stay in control. 
• The key support area is in focus guarding deeper to 1.3000. 

The Canadian dollar hit a four-month high against its US counterpart on Tuesday on bolstered bets for a pause in the Federal Reserve's interest rate hiking cycle. Us inflation on Tuesday was the catalyst along with the oil price. This all follows the Bank of Canada last week that raised its benchmark interest rate for the first time since January, tightening by 25 basis points to 4.75%.

The bears are in control as follows:

USD/CAD weekly chart

USD/CAD's weekly chart is showing that the M-formation's neckline is vulnerable to a test in the coming weeks. So far, the bears remaining control but they are headed into a key area of potential support. A significant break of 1.3262, however, will open the risk of a deeper move towards 1.3000.