• EUR/CAD dipped on Monday as euro was dragged down after the surprise collapse of the French government.
• French Prime Minister Sébastien Lecornu resigned on Monday, just 14 hours after announcing his new cabinet. His departure, accepted by President Emmanuel Macron, makes him the shortest-serving prime minister in the history of the French Fifth Republic, with a tenure of only 27 days.
• Lecornu’s resignation came after a key coalition partner, the conservative Republicans, withdrew their support following his controversial cabinet appointments.
• Political instability in France has intensified since President Emmanuel Macron’s re-election in 2022, as no single party or coalition holds a majority in parliament.
• On the data front, Eurozone retail sales increased by 1% year-on-year in August, following a revised 2.1% rise in July, official Eurostat data released on Monday showed.
• Immediate resistance is located at 1.6399(23.6%fib), any close above will push the pair towards 1.6427(Higher BB).
• Support is seen at 1.6255 (38.2%fib) and break below could take the pair towards 1.6147(Lower BB).
Recommendation: Good to buy around 1.6310 , with stop loss of 1.6250 and target price of 1.6380
