The Canadian dollar continues to follow a standard 3-wave downtrend pattern, with the recent secondary (intermediate-term) uptrend amounting to Wave B (second wave) of the major (long-term) downtrend. Wave A (first wave) ran from the high of 0.83269 (June 2021), part of a key bearish reversal, through the low of 0.77223 (August 2021). The secondary uptrend saw the loonie reach 0.81366 the week of October 18 before closing lower, establish a bearish spike reversal. This past week saw weekly stochastics establish a bearish crossover above 80%, singling a new secondary downtrend is on the way. When this happens, it would be considered Wave C (third wave) of the major 3-wave downtrend and projected to take out the Wave A low. The next major downside target is 0.75720, the 50% retracement level of the previous uptrend from 0.68170 (March 2020) through the June 2021 high.
