The Canadian dollar (loonie) remains in a major (long-term) downtrend despite the rally seen to close out the end of month. July saw the loonie take out the previous 4-month low of 0.78483 on its way to a monthly low of 0.78101, before rallying to close at 0.80165. This was still down 0.00486 lower for the month as the loonie built on its bearish key reversal from June. Last month’s reversal pattern confirmed the move to a major downtrend first indicated by a bearish crossover by weekly stochastics above the overbought level of 80% at the end of January 2021. The downside target area is between 0.77501 and 0.73938.