• EUR/NZD retreated as investors weighed ongoing political chaos in France against easing US-China tensions.
• Prime Minister Sébastien Lecornu resigned just hours after presenting his cabinet to President Emmanuel Macron, creating the shortest-lived government in modern French history.
• Both the hard-left “France Unbowed” (LFI) and the far-right National Rally (RN) filed no-confidence motions on Monday..
• Lecornu is expected to face a no-confidence vote on Thursday. It remains unclear whether he has enough support to survive, as the Socialists—whose backing he will likely need are keeping their options open.
• Immediate resistance is located at 2.0342 (23.6%fib), any close above will push the pair towards 2.0433 (Higher BB).
• Immediate support is seen at 2.0154 (SMA 20) and break below could take the pair towards 2.0022 (38.2%fib).
Recommendation: Good to buy on dips around 2.0200 with stop loss of 2.0100 and target price of 2.0280
