FX.co ★ USD/CAD technical analysis for August 16, 2011

At the moment the Canadian dollar is testing the 50.0 level of long-term Fibonacci correction. The situation is rather interesting as in several days of decline the price has appeared to be oversold both in a 4-hour and in a daily graph.
At the moment the most probable scenario for the price is to rebound from the 50.0 level to 61.8 of long-term Fibonacci correction. It is likely that the price will reverse from the 61.8 level and then will try to break 50.0 again.
As to additional signals, we can note the readings of the Awesome Oscillator that has recently started to give signals to open short positions.