EUR/CAD likely to break the Resistance level to continue uptrendEuro / Canadian DollarFOREXCOM:EURCADrishililawat5The EUR/CAD currency pair on the 1-hour timeframe is currently showing signs of a developing bullish structure following a prolonged period of decline. After forming a base near the 1.5600–1.5650 region, the pair has gradually shifted into a recovery phase, characterized by a sequence of higher lows supported by an ascending trendline. Price action is now compressing between this rising support trendline and a descending resistance trendline, forming a tightening structure that suggests an imminent breakout. Recently, EUR/CAD has been testing the upper boundary of this structure near the 1.5950–1.6000 region, where sellers have previously stepped in. However, the persistence of higher lows indicates increasing buying pressure and accumulation beneath resistance. From a fundamental perspective, the EUR/CAD pair is influenced by the relative strength of the Eurozone economy compared to Canada, as well as commodity price movements, particularly crude oil, which has a strong impact on the Canadian Dollar. The Euro has shown relative resilience supported by stabilizing economic indicators and expectations that the European Central Bank may maintain a balanced policy stance. On the other hand, the Canadian Dollar remains sensitive to fluctuations in oil prices and global demand conditions. If oil prices weaken or remain volatile, it could put pressure on CAD, indirectly supporting EUR/CAD upside. Additionally, monetary policy divergence plays a role in shaping the pair’s direction. If the European Central Bank maintains a steady approach while the Bank of Canada leans toward a more accommodative stance due to growth concerns, this could further support the Euro against the Canadian Dollar. Global risk sentiment also impacts CAD, as it tends to perform better in risk-on environments due to its commodity-linked nature. Any shift toward risk aversion could weaken CAD and provide additional upside momentum for EUR/CAD. Overall, the combination of a strengthening technical structure and supportive fundamental backdrop suggests a higher probability of upward movement. The formation of higher lows, trendline support, and repeated resistance testing indicates accumulation and potential breakout conditions. Therefore, we can consider a Buy trade at the 1.6030 price level, with a target of 1.6160.