USD/CAD trades well below tramline support, decline till 1.2680 likely

• Major Support- 1.2870 (trend line joining 1.24607 and 1.26778).
   
• Major resistance- 1.2950 (100 day MA).
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• Canadian dollar trades stronger against all major pairs as oil extended rally for a fifth day  on account of the weaker dollar and unexpected decline in U.S crude and gasoline inventories.
   
• Crude has gained almost 13% since Thursday on speculation that OPEC will freeze output in coming meeting.
   
• Lonnie breaks major support 1.2870 and declined till 1.27987 yesterday. It is currently trading around 1.28109.
   
• Short term trend is still weak as long as resistance 1.2950 (100 day MA) holds.
   
• Any break above 1.2950 confirms minor trend reversal and break above targets 1.3000/1.3035/1.3068 (21 day MA).
   
• On the lower side, short term bottom has been formed at 1.27987 and any break below that level will drag the pair further down till 1.2748 (61.8% retracement of 1.24607 and 1.32541)/1.26778 (Jun 23rd 2016 low).

It is good to sell on rallies around 1.2855-1.2860 with SL around 1.2950 for the Tp of 1.2745/1.2680