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FxWirePro: EUR/CAD loses momentum but bullish setup remains

• EUR/CAD edged lower  on Tuesday as euro was weighed down by political uncertainty in France after Prime Minister Francois Bayrou was ousted in a no-confidence vote.

• France’s parliament ousted the government on Monday over its proposals to control the country’s mounting national debt, plunging the eurozone’s second-largest economy into a deeper political crisis.

•  President Emmanuel Macron, facing opposition demands to dissolve parliament and resign, is instead set to search for his fifth prime minister in under two years.

• Looking ahead,  investors will   shift their attention to an interest rate verdict by the European central bank and the inflation data from the United States.

• Immediate resistance is located at 1.6261 (23.6%fib), any close above will push the pair towards 1.6129(Higher BB).

•  Support is seen at 1.6183(Sep 8th low) and break below could take the pair towards 1.6119(38.2%fib).

Recommendation: Good to buy  around 1.6180 , with stop loss of 1.6050  and target price of 1.6270
 

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