EURCAD is in the middle of a correction from a strong rally that took price above the 1.5600 major psychological resistance. Applying the Fibonacci retracement tool shows where buyers might be waiting.

The 50% level is close to the broken resistance that could now hold as support, but price already seems to be finding some buyers at the 38.2% level. A larger correction could last until the 61.8% Fib that lines up with the 200 SMA dynamic inflection point and the 1.5550 minor psychological mark.

On the subject of moving averages, the 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that the climb is likely to gain traction. The 100 SMA is also close to the 50% Fib to add to its strength as a floor. If any of these levels are able to keep losses in check, the pair could recover to the swing high at 1.5700 or higher.

Stochastic is already starting to turn higher from the oversold region to signal that buyers are taking over while sellers take a break. RSI hasn’t quite reached the oversold region but is already turning up, hinting that bulls are eager to charge.

The oil-related Loonie is enjoying some support over the past few hours thanks to the OPEC+ decision to cut production by 500K barrels per day starting in January. However, the upcoming jobs release from Canada could still shake things up.

The economy is expected to have added 22K jobs in November, slower than the earlier 83.6K increase. A stronger than expected figure, however, could still mean gains for the Loonie while a downside surprise could push the currency back down.

There are no major reports due from the eurozone, although it’s worth noting that the shared currency is also taking some cues from Brexit updates.