A look at the monthly chart for the Canadian dollar (value in US dollars, CADUSD) shows the loonie looks to be getting top heavy following a solid rally in August. Last month saw the CADUSD post a high of 0.76792, just short of the next upside target of 0.77268. This latter price marks the 61.8% retracement level of the previous major (long-term) downtrend from 0.82891 (September 2017) through the low of 0.68170 (March 2020). Early September saw the loonie bump up to a new high for this move of 0.76949 before finding increased selling interest. Like the euro (see Tuesday’s post, “I Keepin’ Me Waitin'”), monthly stochastics for the CADUSD are above the overbought level of 80%, in position for a potential bearish crossover that would signal a move to a new major downtrend. Note there is old resistance near this level as well, with a pocket of trade between  0.74721 and 0.77196 registered between September 2019 and December 2019. As for trendline support (green line), connecting the lows since this past March creates a steep slope with the trendline price this month at 0.75310. The abruptness of this year’s rally has support at the 4-month low far below the market at the May low of 0.70550. If the early September high turns out to be the major peak, the downside range is between 0.73595 and 0.71524.