It is advisable to use the growth of quotations in the area of the psychological level of 110.00 to open Sell positions with the expectation of a decrease in the quotations of the American currency, inasmuch as the Fed does not want to quickly reduce stimulus measures and raise the discount rate, even despite the high inflation that has been observed this year.

Jerome Powell considers high inflation as a temporary phenomenon and in every possible way reassures investors. Meanwhile, I do not expect large-scale sales of this currency pair, inasmuch as it is historically correlated with the American stock market, which has renewed its historical maximum again.

Trading recommendation: Sell 110.00/110.20 and take profit 109.65.