USD/CAD 4H Chart: Channel Down

The American currency is well-positioned for deep losses against its northern counterpart in the nearest future, given that two major March lows (1.2856 and 1.2924) are already placed behind the spot. The key short-term support to watch is the monthly S1 at 1.2724, while technical indicators suggest the bears will succeed. In the mid-term USD/CAD should be ready to tackle the 1.25 mark, namely the lower boundary of the bearish channel. The monthly S2 at 1.2443 will try to contain a drop below the downtrend; thus, the likelihood of a rebound from 1.25 is quite high. Rallies will have to suffer near 1.30 where the bulls are going to meet the 55-day SMA and other simple moving averages.