• USD/CAD bulls are in town but they face a standoff at key 4-hour resistance.
• M-formation topping pattern could lead to significant downside in coming sessions. 

USD/CAD has struggled to break 1.3600 as it climbs trendline support on the daily chart but suffers a blow from the US data pivot on Monday tempering the hawkish sentiment around the Federal Reserve to start the week. USD/CAD reached a high of 1.3665 on Friday and suffered a drop of around 90 pips on Monday for the opening balance. At this juncture, bulls need to commit or face prospects of a significant correction in the coming days. 

USD/CAD daily chart

The channel is valid, for the time being, so there are prospects of a move higher should the support hold. However ... 

There is an M-formation topping pattern on the 4-hour chart and should the neckline hold as resistance, the bears could be encouraged to follow through:

The M-formation is a reversion pattern and hence the price is coming up to test the neckline. 1.3520 to the downside is key if the neckline were to act as resistance.