The euro is currently trading in the 14-month minimum and “the bulls” have little chance of success. Firstly, there is a decrease in the yield spread of short-term and long-term US Treasury bonds in the debt market, which signals an impending increase in the Fed’s interest rate. This figure is approaching 1%.

Fed rate futures indicate now that the monetary regulator may raise the rate three times next year. It is certainly too early to draw conclusions about a radical change in monetary policy, but market sentiment is now clearly in favor of the dollar. Secondly, the fall in gold prices will also put pressure on the European currency, inasmuch as assets are historically correlated with each other. Gold is falling for the same reason – the expectation of an increase in the Fed’s interest rate.

Trading recommendation: sell 1.1263/1.1300 and take profit 1.1219.