BOC decision up next

Now that the election is over and Justin Trudeau has secured a majority, traders can shift focus on other events and trends. The Bank of Canada interest rate decision is tomorrow at 10 AM. Governor Poloz speaks at 11:15 AM ET. Recent comments from Poloz have warned about increasing debt levels but he added the Bank of Canada is not responsible for poor decisions on personal/housing debt. On the CAD, he commented back on September 21 that "our floating exchange rate helps absorb some of the impact of the price movements and sends signals that facilitate adjustments."

Technically, the USDCAD has corrected lower in trading this month. The pair fell about 4.6% from the peak to the low reached last week. That low stalled at trend line, near swing high from March and the 38.2% of the move up from the May 2015 low (at 1.28687). Last week, the pair also dipped and closed below the 100 day MA for the first time since June 26th. That break was reversed in yesterday's trading.

Today, the price has move back lower after rising as the results came in. The pair is currently trading at the lows for the day but is approaching key support against the 100 hour MA at the 1.2936 level, the 50% of the move up from the October low at 1.2940 and the 100 day MA at the 1.2925. Look for patient buyers to start to put a toe in the water in the 1.2925-36 area with a stop on a break below. There is a cluster of support to lean against. A hold and move back above the 200 hour MA at the 1.2965 will then be eyed.