Inasmuch as this currency pair is closely correlated with the S&P500 index, which is approaching its historical maximum, it is advisable to use a decline in quotations to the nearest support levels to open Buy positions in the hope of continuing the upward trend. Yesterday the Federal Reserve published statistics on the change in the banking multiplier, which is still showing a decline and amounted to 3.36x in May.

Let me remind you that at the beginning of the year this indicator was at the level of 3.69x. American banks do not want to actively lend to the economy, and during such periods we should not expect a steady rise in inflation. Yes, now inflation has grown and exceeds 3%, but this is largely due to the effect of the low base of the past year, which will be leveled at the end of the year. Against this background, the Fed will not rush to roll back stimulus measures, which will allow the S&P500 to set a new record.

Trading recommendation: Buy 110.40/110.15 and take profit 110.85.