FxWirePro: EUR/CAD slips on French politics, German data

• EUR/CAD slipped towards 1.6200   on Wednesday as French political turmoil and weak German data weighed on the euro.   

• French caretaker Prime Minister Sebastien Lecornu said on Wednesday that a deal on the 2026 budget could eventually be reached, striking a cautiously optimistic tone during talks with various parties amid the ongoing political crisis.

• Lecornu, France’s fifth prime minister in two years, resigned along with his government on Monday just hours after unveiling his cabinet, marking the shortest-lived.

• German industrial output plunged in August, driven by a sharp drop in car production as pre-tariff demand from the U.S. waned.

• Germany’s industrial production dropped 4.3% month-on-month in August, the largest decline since March 2022, the federal statistics office reported on Wednesday.
 
• Immediate resistance is located at 1.6283 (38.2%fib), any close above will push the pair towards 1.6293(SMA 20).

• Support is seen at 1.6188 (38.2%fib) and break below could take the pair towards 1.6159(Lower BB).

Recommendation: Good to sell around 1.6240 , with stop loss of 1.6350 and target price of 1.6160