EURCAD continues to move sideways in its range, finding resistance at the 1.3750 minor psychological mark and setting its sights on support at the 1.3400 major psychological level.

Technical indicators are hinting that support is more likely to hold than to break. The 100 SMA just crossed above the 200 SMA to suggest that the path of least resistance is to the upside, but price is moving below both indicators.

Stochastic is starting to pull higher from the oversold region to confirm that buyers are taking over while sellers are taking a break. RSI has a bit more room to slide but is already closing in on the oversold region to reflect exhaustion among sellers soon.

If euro bulls are eager to take over, EURCAD might already bounce off this mid-range area of interest around 1.3550-1.3600.

EURCAD could take cues from the upcoming BOC decision, as the Canadian central bank is widely expected to hike rates by 0.50%. A smaller rate hike, however, might mean some downside for the Loonie since it would suggest that policymakers are not that confident with their outlook.

Crude oil price action might also drive the correlated Loonie throughout the week, especially with the EU announcing an embargo on most of Russian oil and the OPEC-JMMC meeting coming up.

While the latter could mean an energy crunch and higher oil prices down the line, the cartel’s plans to remove Russia from their output deal could allow other members to pump more oil.

Meanwhile, there are no major reports due from the eurozone for the rest of the week, leaving the shared currency to take cues from market sentiment. A return in risk-off flows could mean downside for the lower-yielding euro while risk appetite might benefit the higher-yielding Canadian dollar more.