The USDCAD pair traded with negative bias yesterday affected by the BOC decision to keep the rate unchanged. The expectations were a potential rate cut. Even though the news are not negative for CAD, the market reacted against all odds as it does in many cases on fundamental news announcements. The price touched the key support at 1.4430, holding above. This level represents key support to continue the main positive scenario. Today the price is trying to retest this support. Yesterday's USDCAD action might be a sign of the capitulation of CAD bears and the profit taking. If the price holds this level, it will trade in the corridor to 1.4610 and might extend to 1.4894.

My trading plan is to allow USDCAD to break the support level and buy the currency upon returning to the range territory. If the currect support becomes resistance, a further push down to 1.40 area is very possible. The oil does not keep falling today, which allow USDCAD for a freefall on a profit taking preassure.