We have seen a decline in quotations over the past two days, but today the continuation of the downtrend is not so obvious. American investors are returning to active trading today after a long weekend, and I expect the continuation of the uptrend in the US stock market, which may support this currency pair, inasmuch as it is historically correlated with the S&P500 index.

Today the Fed and the US Treasury will increase the surplus of dollar liquidity in the financial system by $37.42 billion, which is favorable for the American stock market. Additional support for the stock market can be provided by the ISM report on business activity in the service sector. I expect positive data to be released against the background of an accelerating rate of vaccination of the population.

Trading recommendation: Buy 110.55/111.35 and take profit 110.95.