I still see the Canadian dollar (CADUSD) in a major (long-term) downtrend, though the loonie continues to flatline on this monthly close-only chart. Support is at the recent low monthly close of 0.78249 (November 2021), with resistance at the recent high 0.79802 (December 2021). If the loonie breaks support to finish off this major move, the next downside target is 0.76965. However, based on this chart, it could be argued the Canadian dollar has completed a 3-wave downtrend meaning bullish traders are expecting the loonie to take out its previous high and start to strengthen again. Monthly stochastics continue to hold above the oversold level of 20%.
