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FxWirePro: EUR/NZD runs out of steam but maintains bullish outlook

• EUR/NZD retreated slightly  on Monday   after France's new Prime Minister Sebastien Lecornu and his government resigned on Monday.

• Prime Minister Sébastien Lecornu resigned just hours after presenting his cabinet to President Emmanuel Macron, creating the shortest-lived government in modern French history. 

• France has cycled through three prime ministers in less than a year, each struggling and ultimately failing to push through unpopular budgets, with the latest setback coming on Monday.

• Investors are worried about France's creditworthiness, compounded by a ratings downgrade last month. On.

• Immediate resistance is located at 2.0163 (Daily high), any close above will push the pair towards 2.0313 (23.6%fib).

• Immediate support is seen at 2.0058 (SMA 20) and break below could take the pair towards 1.9992 (38.2%fib).

Recommendation: Good to buy on dips around 2.0000 with stop loss of 1.9950 and target price of 2.0080
 

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