The pair has fallen sharply.

After the news of the agreement between the head of the White House and the President of China to suspend the trade war, investors returned to demand for risky assets. The American dollar has become less popular, having lost some of its positions.

The US dollar index, which reflects the average weighted rate of the reserve currency to the basket of major currencies, dropped to a two-week minimum and is currently at the level of 96.40.

The Japanese data released today also helped the Japanese yen continue to strengthen.

We believe that the current situation with the weakening of the dollar may last until the end of the week, since in the middle of the month another increase in interest rates may be announced. Therefore, in the medium term, we believe that the pair is set to decline.

We advise you to look for points to enter short positions and consider targets at the marks near the levels of 112.35, 112.00 and 111.80.