USD/CAD has been trading in a choppy manner in the short-term, but is essentially trading sideways in the medium-term. Yesterday, the Bank of Canada (BoC) met to vote for monetary policy. These events tend to have strong effects on the CAD. Let's take a look a the charts to assess the latest reaction to a BoC meeting.USD/CAD 4H Chart 9/8(click to enlarge)Broken triangle meant nothing:- In the 4H chart we can see that price was forming somewhat of a triangle.- However we quickly see that a bullish breakout meant nothing.- After a very apparent price top, USD/CAD fell from almost 1.3150 to 1.2825. - Now, price was showing short-term bearish bias and momentum ahead of the BoC meeting. But after it, we saw a strong bullish engulfing candle pushing price back to 1.29. Reaction candle means key support:- This BoC-reaction candle if you will, establishes a key support at 1.2825. - This means, a break below 1.2825 basically tells us the reaction was NOT smart money.- Otherwise, we can anticipate a rally from 1.2825 at least in the short-term. Limit bullish target to 1.30:- Because a bullish outlook right now is based on very short-term momentum within a sideways market, we should limit the outlook to 1.30.- 1.30 is a psychological level.- There is a previous support pivot around 1.30.- The 200-, 100-, and 50- simple moving averages in the 4H chart cluster around 1.30. (from business.financialpost.com)Bank of Canada was slightly dovish:The BoC held the benchmark interest rate at 0.50% and struck a cautious tone regarding the economy. It was not all that bad because the BoC ultimately anticipates a rebound in the second half of the year.I think the main take away is that yes the BoC is slightly dovish, but there has not really been much change in tone from the policy makers - another reason NOT to expect too much follow through in USD/CAD's bounce, at least not solely due to the initial reaction.