Today I expect the continuation of the rally in the American stock market, which will have a favorable influence on the value of this currency pair. American corporations continue to please investors with positive quarterly reports, which, given the surplus of dollar liquidity, will force investors to buy securities on the NYSE, even if they do not want to.

Nowadays, banks and investment funds do not have many choices where they can invest their free capital. The yield on government and corporate bonds is less than inflation now. There is only one option left – to buy shares, counting on the growth of market value and dividend payments. This is a positive signal for this currency pair, inasmuch as it is historically correlated with the US stock market.

Trading recommendation: Buy 110.10/109.85 and take profit 110.55.