For more than a week already the Canadian dollar has been strengthening against the U.S. dollar. Analyzing USD/CAD, we see the reason for a price growth stop last week. The price growth was moderated by a very strong resistance level at 1.0650 (see Weekly Chart). When the price reached the SAR level, it bounced off and obtained new target levels at a downward movement. Currently, the price is testing and is likely to break a 23.6% level of long-term Fibonacci correction. The next level is expected at 50.0% of mid-term Fibonacci correction and 38.2%. A probability that the price falls is higher in a long term rather than in a short term.
Due to a strong correction of two last months, the price entered technically oversold area (see Weekly Chart). Williams' percent range (%R), Stochastic oscillator and even Relative strength index (RSI-14) send signals. Signals to open positions for a fall are sent by Williams' percent range and Relative strength index. A signal of Stochastic oscillator has already passed through a crossing of %K line with %D line and %K line with a control level at 80.