FxWirePro: EUR/NZD slides as French political crisis deepens

• EUR/NZD   extended fall on Tuesday as euro stayed under pressure after French Prime Minister François Bayrou’s expected confidence vote defeat, adding to political instability in Paris.

 • French lawmakers ousted Prime Minister Francois Bayrou and his minority government in a 364–194 vote.

•Opposition forces toppled the centrist leader over his €44 billion ($52 billion) budget squeeze, a program expected to be significantly scaled back by Macron’s successor.

•The next French leader is likely to lean on higher taxes rather than spending cuts, as the Socialists, possible suppliers of the new prime minister, advocate a €15 billion tax rise on the wealthy elite.

• Meanwhile, attention will shift toward the European Central Bank’s policy decision and U.S. inflation data in the days ahead.

• Immediate resistance is located at 1.9843 (20DMA), any close above will push the pair towards 1.9950 (Sep 8th high).

• Immediate support is seen at 1.9730(38.2%fib) and break below could take the pair towards 1.9634(Lower BB).

Recommendation: Good to buy round 1.9800 , with stop loss of 1.9900 and target price of 1.9720