• EUR/CAD rebounded on Friday as markets focused on President Emmanuel Macron’s efforts to navigate France’s political crisis.
• Friday's focus was on a crunch meeting between Macron and mainstream political leaders ahead of a self-imposed late-Friday deadline to name a new prime minister.
• Political deadlock has stalled budget reforms and deepened investor worries about France’s growing deficit, compounded by weakening growth in major economies such as Germany.
• France is expected to miss the deadline for submitting its 2026 budget bill, prompting lawmakers to pass temporary legislation to authorize spending from January 1 until a full budget is approved.
• Immediate resistance is located at 1.6289(SMA 20), any close above will push the pair towards 1.6422 (23.6%fib).
• Support is seen at 1.6174 (38.2%fib) and break below could take the pair towards 1.6159(Lower BB).
Recommendation: Good to sell around 1.6260 , with stop loss of 1.6320 and target price of 1.6200
