First and foremost, the Canadian dollar (loonie) remains in a major (long-term) downtrend on its monthly chart. This began with a key bearish reversal this past June, and has resulted in a test of the initial downside target of 0.77501 during August and September. This price marks the 38.2% retracement level of the previous major uptrend from 0.68170 (March 2020) through the high of 0.83269 from this past June. However, the last two months have also shown the loonie rallying off that initial downside target as it continues to consolidate. This could lead to a Wave B (second wave) rally within the major 3-wave downtrend pattern. If so, Wave B’s always have the potential to retrace all or more of Wave A. Since I remain a loonie bear (folks would argue that is true in more ways than one), I’m viewing an expected secondary (intermediate-term) upturn as a selling opportunity with the expectation the major trend will extend to at least 0.7572 over time.