The rally in the American stock market is gaining momentum, which will have a positive influence on the quotes of this currency pair, inasmuch as it is historically correlated with the S&P500 index. The $1.2 trillion infrastructure package was passed by the House of Representatives and will be signed this week.

The growth in government spending will lead to an increase in corporate income, which will allow them to increase dividend payments and buybacks of their own shares. Against this background, investors are in a hurry to buy securities, while they have not risen in price yet. November and December are historically favorable months for the stock market and I expect this trend to continue this time.

Trading recommendation: buy 112.64/112.45 and take profit 113.50.