The growth of quotations in the area of 110.30 should be used to open Sell positions, inasmuch as the comments of the head of the Federal Reserve will have a negative influence on the value of the American currency. Today is the second day of the Jackson Hole Economic Symposium, where Jerome Powell will highlight the necessity of maintaining stimulus measures to ensure sustainable employment growth in the American economy.

Therefore, the Fed will continue to print money, which will further “inflate” the surplus of dollar liquidity. For example, this week bankers are returning more than $1 trillion to the Fed every day within reverse repo transactions. This situation indicates a substantial excess of liquidity and maintaining stimulus will only exacerbate this problem.

Trading recommendation: Sell 110.30/110.55 and take profit 109.90.