EURCAD recently busted through resistance at the 1.5600 major psychological mark then zoomed up to a high of 1.5787 before retreating. The broken resistance held as support, allowing the pair to set its sights on fresh upside targets.

The Fibonacci extension tool shows where buyers might be looking to book profits. The 38.2% level is at 1.5745 then the 50% level lines up with the swing high. Stronger bullish momentum could take EURCAD up to the 61.8% level at 1.5830 or the 76.4% level at 1.5882. The full extension is at 1.5968.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside. This means that support levels are more likely to hold than to break. Price is trading above both moving averages, so these could continue to hold as dynamic support on dips.

Stochastic is heading up and has a bit more room to climb before reflecting overbought conditions or exhaustion among buyers. This means that EURCAD has enough bullish pressure to go for higher upside targets. RSI also has some room to climb before reaching the overbought zone, so the pair could follow suit.

The euro is enjoying some support as traders appear hopeful about vaccine developments in the region. However, a new strain of the virus has been reported in the UK and could easily spread to neighboring countries, possibly resulting in a fresh wave of lockdown measures.

For now, the optimism for the Brexit agreement is also lifting the shared currency as it takes off some of the uncertainty for both the UK and the rest of the bloc.

Meanwhile, the Canadian dollar appears to be waiting on risk sentiment and crude oil prices to pick a clearer direction, as the commodity is being pulled in opposite directions.