EURCAD is trending higher on its 1-hour time frame and is bouncing off the ascending trend line support onto the next upside targets marked by the Fibonacci extension tool.

The 38.2% level is close by at 1.5083 then the 50% level is at 1.5111. Stronger bullish pressure could take it up to the 61.8% level at 1.5140 or the 76.4% extension that lines up with the swing high. The full extension is at 1.5231.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to resume than to reverse. The 200 SMA held as dynamic support as it coincides with the trend line at the 1.5000 major psychological mark.

Stochastic is pointing higher to show that buyers are in control and could keep the uptrend going. RSI is also pulling higher without reaching the oversold zone, suggesting that bulls are eager to return.

The BOC decision was more hawkish than expected, even as the central bank kept interest rates unchanged. Policymakers decided to reduce asset purchases by 1 billion CAD down to 3 billion CAD weekly, indicating that they could be moving closer to tightening monetary policy soon.

In addition, the Canadian central bank adjusted its forward guidance on interest rates, citing that a hike in 2022 might be possible. Prior to this, the BOC stated that they had no plans on tightening before 2023.

However, the upcoming ECB decision could still allow the EURCAD rising trend line to hold if the central bank also has a hawkish statement. Although most leading indicators have shown improvements, setbacks in the region’s vaccination rollout program could discourage the ECB from taking a more optimistic view.

No actual changes are eyed for now, as the central bank already frontloaded its PEPP in an earlier statement.