EURCAD has been trending higher with rising lows connected by an ascending trend line that’s been holding all month. Price is stalling at the highs around the 1.5000 major psychological mark and may be gearing up for a quick retracement.

The Fibonacci tool shows that the 38.2% Fib is at 1.4896 near the 1.4900 major psychological support while the 50% level is closer to the trend line at 1.4865. The line in the sand for a bullish correction might be the 61.8% level at 1.4833 near the 100 SMA dynamic inflection point.

On the subject of moving averages, the 1oo SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. The gap between the indicators has also widened to reflect stronger bullish pressure.

Stochastic is on the move down but seems to be changing its mind halfway through, suggesting that a pickup in bullish momentum may be in order soon. RSI is also heading lower but is stalling on middle ground to signal potential consolidation as well.

Traders are likely to take cues from the outcome of eurozone flash PMI surveys, as a uniformly weak result could mean more downside for the shared currency. On the other hand, strong figures could point to resilience and lower the odds of additional ECB easing soon.

Meanwhile, the BOC is widely expected to announce a 0.25% interest rate cut, possibly leading to fresh downside for the Loonie if the central bank signals scope for further easing. Announcing a “hawkish cut” on the other hand could spur profit-taking since easing has been priced in for quite some time now.

Traders could also take direction from crude oil price movements, as a recovery from this week’s selloff could ensue if the EIA inventories report reflects sustained demand conditions.