Similar to the discussion I just posted in Monthly Analysis regarding the euro, the Canadian dollar moved to a new high for this move of 0.79403 before closing at 0.78261, down from the December settlement of 0.78521. This price action established a bearish spike reversal, a less reliable pattern (but pattern nonetheless) indicating the major (long-term) trend has turned down. Additionally, monthly stochastics posted a bearish crossover above the overbought level of 80%, another indicator the major trend is set to turned down. While it would be easy to be technically bearish, we saw a more reliable bearish key reversal this past September. However, at that time monthly stochastics were still well below the 80% level. If the major trend has turned down, the target area is between 0.75112 and 0.72461, the 38.2% and 61.8% retracement levels of the previous uptrend from 0.6817 (March 2020) through the January 2021 high. If looking to short the loonie, buy stops could be placed above the January high.