EURCAD recently busted through resistance at the 1.4700 handle to signal that a climb is in the works. However, price hit a roadblock close to the 1.5000 major psychological mark so a pullback might be due.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 38.2% level lines up with a short-term area of interest at the 1.4850 minor psychological mark. A larger correction could last until the 61.8% level that’s close to the former resistance at 1.4700 and the dynamic inflection points at the moving averages.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, there’s still a chance for the selloff to resume from here. However, the gap between the indicators has narrowed enough to signal weakening bearish pressure and a potential bullish crossover that could allow the climb to pick up.

RSI is still turning south after recently hitting the overbought zone, indicating that bearish momentum is just returning. Similarly stochastic is just starting to head lower, so price might follow suit while sellers regain the upper hand. Both oscillators have plenty of room before hitting the oversold region.

Higher-yielding currencies like the Loonie have been on the decline as the global easing cycle intensifies. Just yesterday, the RBNZ decided to cut rates by 0.50% versus market expectations of keeping policy unchanged or their earlier 0.25% cut.

This allowed the euro to act as a safe-haven of sorts, rallying against the Loonie which has also been bogged down by weakening crude oil prices. Canada has its jobs report due on Friday and a weak read could ramp up BOC rate cut expectations as well.

The ECB is also dovish but their earlier statement indicated that they’re not inclined to pursue additional easing efforts in the coming months just yet.