USD/CAD is breaking below 1.2635. Next support is located at 1.2568/46, which is the 200-day moving average (DMA) and 2021 uptrend, analysts at Credit Suisse report. 

1.2554/46 set to hold

“We now see losses to potentially extend further within the broader range, with next important support seen at the 200-DMA at 1.2568 and then the uptrend from 2021 at 1.2554/46.” 

“Being a major medium-term support, we expect 1.2554/46 to hold the current decline for an eventual bounce back above 1.2652/62 and next above the February low at 1.2634 – bringing USD/CAD back in the middle of the medium-term upward trending range. 

“A break below 1.2554/46 would increase the risk of a more protracted weakness, with only a sustained break below 1.2449/48 definitely confirming a concerted swing lower within the broader range, which would lead us to shift our bias to a more negative side. However, this is not our base case.”