In my opinion, the correction in the American stock market is over and now we are expecting a continuation of the upward trend, which will have a favorable influence on the value of this currency pair, inasmuch as assets are correlated with each other. On Wednesday, one of the Fed official. James Bullard, began to “nightmarize” the markets with statements about the upcoming stimulus curtailment.

According to Bullard, the Fed should complete the QE program by January 2022, after which it will move to an increase in the discount rate. But in reality, everything does not look so scary – the Federal Reserve continues to stimulate the economy, and even more than it was announced last year. Over the past three months the Fed’s balance sheet has grown by $420 billion, although it should have grown by $360 billion. There is no sign of QE reduction!

Trading recommendation: Buy 109.45/109.20 and take profit 110.05.