The EUR/CAD pair continues to extend its upward momentum, building on the overnight breakout above the 50% Fibonacci retracement level. The technical outlook remains constructive, suggesting that the pair could see further short-term appreciation, with any dips toward the 1.6270 area likely to attract fresh buying interest.
EUR/CAD maintains bullish momentum
EUR/CAD has gained for the second consecutive session, extending its rebound from the 1.6170–1.6175 region — a three-week low reached last Friday. The pair has now advanced for three of the last four sessions, pushing beyond the 1.6300 psychological level to reach a one-week high during early Wednesday trading in Asia.
Technical indicators support further upside
From a technical standpoint, the overnight breakout above the 50% Fibonacci retracement of the recent pullback from 1.6400 — the highest level since April 2009 — has strengthened bullish sentiment. Daily chart oscillators are turning increasingly positive, reinforcing the case for continued gains in the EUR/CAD pair.
Next upside targets and key support levels
A sustained move above the 61.8% Fibonacci retracement level, around 1.6315, would confirm the bullish outlook and open the door for a move toward mid-1.6300s resistance. If the buying momentum extends beyond the 1.6370–1.6375 zone, the pair could make another attempt to test the key 1.6400 handle.
On the downside, immediate support lies near the 1.6270 level, followed by the 1.6250–1.6245 area. A break below these levels could expose the 1.6220 region — the overnight swing low — and eventually the 1.6200 weekly trough. A decisive move below this latter zone would invalidate the current bullish structure and shift the near-term bias in favor of EUR/CAD bears.
