The positive dynamics of the Asian stock markets allows counting on the growth of the American stock market, which in turn will support this currency pair, insofar as it is historically correlated with the S&P500 index. The American stock market is trading at 1.5% of its all-time high. Investors are quickly buying back small drawdowns in the S&P500 as they expect a continuation of the uptrend.

According to the CFTC, the speculative position of futures traders on the S&P500 index has been in negative territory for the last eight consecutive weeks, which is positive, as there is potential for growth in quotations due to the reduction of “shorts”. It would be bad if the speculative position was at the maximum, then there would be nothing to grow. Now there are no extreme values, which is positive.

Investment idea: Buy 103.75/103.55 and take profit 104.25.