The Canadian dollar (CADUSD) closed out another month rallying off its low, though not enough to change its major (long-term) downtrend. The CADUSD finished august at 0.79256, down 0.00909 for the month, after posting a low of 0.77223.Note this was a test of the 38.2% retracement level of the previous major uptrend from 0.68170 (March 2020) through the high of 0.83269 (June 2021). The latter was part of a key bearish reversal that established the new downtrend. Given the August low was a test of support, and the third lower monthly close, the door has been opened for a possible Wave B (second wave) rally within the major 3-wave downtrend pattern. If so this could eventually lead to a solid retirement of Wave A from the June 2021 high. Eventually, though, the CADUSD should extend its downtrend to at least the 50% retracement level of 0.75720, if not the 61.8% retracement mark of 0.73938. Much will depend on how quickly monthly stochastics move toward the oversold level of 20%.