Today the situation with the Chinese developer Evergrande may become clearer, which may agree with the Government of the PRC on financial assistance to pay for its loans. The company’s debt is $305 billion, which is a world record. If the authorities of the Celestial Empire do not help the developer, then on Monday we may witness a new global financial crisis, inasmuch as the lenders of Evergrande are not only Chinese, but also European banks, as well as their colleagues from the United States.

In my opinion, the Chinese authorities understand the seriousness of the problem and will not allow Evergrande to go bankrupt. Against this background, I expect the continuation of upward trend in the American stock market, which is favorable for this currency pair, insofar as the asset is historically correlated.

Trading recommendation: Buy 109.66/109.40 and take profit 110.20.