The situation in this currency pair looks a little bit confusing. On the one hand, we can expect a decline in quotations against the background of capital outflow from the US dollar, inasmuch as the number of supporters of the idea that the Fed will stimulate the economy for a long time and will increase the surplus of dollar liquidity in the financial system is growing in the market every day.

On the other hand, I expect the continuation of uptrend in the US stock market, which will have a beneficial influence on this currency pair, inasmuch as it has been historically correlated with the S&P500 index.

Trading recommendation: flat 109.40 – 110.30.