EURCAD is trending higher on its 4-hour chart, forming higher lows and higher highs connected by an ascending channel. Price is currently testing the bottom of the channel and might be due for a bounce back to the top.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. The gap between the indicators is gradually widening to reflect strengthening bullish pressure.

If support holds, EURCAD could recover to the channel top at the 1.4700 major psychological mark or the middle around 1.4500.

Stochastic is already turning higher after dipping to the oversold region, suggesting a pickup in bullish pressure. RSI is also heading up, so price could follow suit while bulls are in control.

A break below the channel bottom around 1.4400, on the other hand, could spur a reversal from the uptrend.

There are no major reports lined up from the eurozone today, so the shared currency could mostly function as a counter currency. The Loonie might take cues from crude oil prices, which have been rallying after the OPEC decision to maintain their production target until next month.

Canada also has its jobs report due later in the week, and analysts are expecting to see a slower increase of 24.3K versus the earlier 153.7K gain. This should still be enough to keep the jobless rate unchanged at 6.0% for December, although a smaller increase in hiring could be concerning.

Note that central banks are keeping close tabs on the impact of the Omicron variant on business and consumer activity, likely affecting their tapering and tightening plans. Any indication that the BOC should slow down its pace of tapering or put off hiking rates much later could mean some downside for the Loonie.