EUR/USD: Break below the 1.1700 support to expose the November low of 1.1603 – Mizuho

FXStreet Team FXStreet

In March, the EUR/USD pair edged lower on the movements of US interest rates. According to economists at Mizuho Bank, the dollar will be bought in April on widening European/US interest-rate differentials. With Europe also facing the threat of a new covid wave, EUR/USD looks set to move bearishly in April.

The clearly different situations in the US and Europe to make the euro comparatively easy to sell

“It seems likely the EUR/USD pair will move bearishly this month. Interest-rate differentials and the COVID-19 vaccination situation have replaced supply and demand conditions as the main factors shaping trends, so the euro will face more downside risk.”

“Around 1.1700 may form a support line for a time, but if the pair breaks below this level, it may test its November low of 1.1603, so caution will be needed.”

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