Canadian Dollar Fails Strong, USD/CAD Tests $1.3500 Wall

<p>&nbsp;The Canadian dollar failed to show any strengthening as Canadian inflation data published in the New York session yesterday recorded encouraging readings.</p><p><br /></p><p>Canada's annual consumer price index (CPI) for July rose 3.3% from 2.8% and the monthly CPI reading also rose.</p><p><br /></p><p>However, the CAD currency failed to rise due to the impact of the drop in crude oil prices in the market.</p><p><br /></p><p>The global crude oil market is facing risks following the current economic turmoil in China, which has led to an expected decline in demand.</p><p><br /></p><p>On the price chart of the USD/CAD currency pair, the price is still showing a modest upward pattern until reaching back to the 1.35000 high level.</p><p><br /></p><p>The Canadian dollar which failed to strengthen, and the US dollar which still managed to maintain its strength, pushed the upward price pattern.</p><p><br /></p><p>The price retested the 1.35000 level which is an important resistance and was also tested on August 8 trading but failed to break through it.</p><p><br /></p><p><br /></p><p>Continuing trading today (Wednesday), the price is slowly flat at the 1.35000 level since the Asian session until the opening of the European session.</p><p><br /></p><p>The price movement that remains above the Moving Average 50 (MA50) support level on the 1-hour time frame on the USD/CAD chart continues to give a bullish signal, but the price needs to break through the 1.35000 resistance first to continue the next increase.</p><p><br /></p><p>If it succeeds in passing it, the price increase will go to the 1.36500 zone which is the resistance once tested by the price last June.</p><p><br /></p><p>However, if the price fails to break through the 1.35000 resistance, the price decline could happen again and a break through the MA50 support would be an early signal for a bearish move.</p><p><br /></p><p>The initial drop in price is seen to be heading towards the 1.34000 level before extending further down to a lower level around 1.33000.</p>