Minuette operational scale (Daily)
What will this May-spoiler, this May-wizard prepare for us on Forex? Development options for the movement of major currency instruments in May 2020 #USDX vs EUR/USD, GBP/USD, and USD/JPY (Daily).
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US dollar index
Starting from May 04, 2020, the movement of the dollar index #USDX will continue to develop within the equilibrium zone (97.55-98.55-99.55) of the Minuette operational scale - details of working out the above levels are presented on the animated chart.
If the upper limit of ISL38.2 breaks down the equilibrium zone of the Minuette operational scale forks - resistance level of 99.55 - the development of the #USDX movement will be directed towards the goals:
- 1/2 Median Line Minute (99.80);
- upper border of the channel 1/2 Median Line Minute (100.80);
With the prospect of reaching the starting line of SSL Minute (102.75).
If the lower limit of ISL61/8 is broken, the Minuette operational scale forks - the support level of 97.55 - development option for the downward movement of the dollar index towards targets:
- upper limit of the 1/2 medium Line channel (97.00) of the Minuette operational scale fork;
- FSL Minor end line (95.75).
The layout of the #USDX movement options from May 4, 2020 is shown on the animated chart.
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Euro vs US dollar
From May 4, 2020, the single European currency EUR/USD will continue to develop its movement within the 1/2 Median Line channel (1.0940-1.1000-1.1060) of the Minuette operational scale fork - details are shown on the animated chart.
In case of breakdown of the lower boundary of the 1/2 channel Median Line of the Minuette operational scale fork - support level of 1.0940 - the downward movement of the single European currency will be directed to the goals:
- SSL start line (1.0900) of the Minuette operational scale fork;
- control line LTL Minor (1.0800);
- control line LTL Minute (1.0760);
With the prospect of updating the local minimum 1.0727.
When the resistance level of 1.1060 breaks at the upper border of the channel 1/2 Median Line Minute, the upward movement of EUR/USD can be continued to the local maximum of 1.147 and the boundaries of the equilibrium zone (1.1250-1.1400-1.1555) of the Minuette operational scale fork.
Options for EUR/USD movement from May 4, 2020, depending on the processing of the channel 1/2ML Minute are shown on the animated chart.
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Great Britain pound vs US dollar
The development of Her Majesty's currency movement GBP/USD from May 4, 2020 will be due to the development and direction of the breakdown of the range:
- resistance level of 1.2550 on the reaction line RL38.2 of the Minor operational scale fork;
- support level of 1.2480 at the lower border of the ISL38.2 equilibrium zone of the Minuette operational scale forks.
If there will be a joint breakdown of the lower boundary of the ISL38.2 equilibrium zone in the Minuette operational scale fork - support level of 1.2480 - and the upper boundary of the channel 1/2 Median Line (1.2430) of the Minuette operational scale fork, then the development of the movement of the currency of Her Majesty can continue in the borders (1.2430-1.2210-1.1995) of this channel 1/2 / ML Minute with the prospect of updating a minimum of 1.1958 and reaching the warning line LWL38.2 Minor (1.1750).
Breakdown of the reaction line RL38.2 of the Minor operational scale forks - resistance level of 1.2550 - will determine that further development of the GBP/USD movement within the boundaries of the equilibrium zone (1.2480-1.2780-1.3070) of the Minuette operational scale forks.
Options for the movement of GBP/USD from May 04, 2020 are shown on the animated chart.
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US dollar vs Japanese yen
Range development and breakdown direction:
- resistance level of 106.90 - the upper boundary of the channel 1/2 Median Line of the Minuette operational scale forks;
- support level of 106.20 at the lower boundary of the ISL38.2 equilibrium zone of the Minuette operational scale forks.
And will determine the development of the currency movement of the "Country of the Rising Sun" USD/JPY from May 4, 2020.
In case of breakdown of the upper boundary of the channel 1/2 Median Line of the Minuette operational scale forks - resistance level of 106.90 - it will be confirmed that further development of the USD/JPY movement will continue in the equilibrium zone (106.20-107.50-108.90) of the Minuette operational scale forks with the prospect of reaching 1/2 Median Line Minor (109.40) and the upper boundary of the channel 1 / 2ML (110.55) of the Minor operational scale forks.
In case of breakdown of the lower boundary of the ISL38.2 equilibrium zone of the Minuette operational scale forks - the support level of 106.20 - will determine the further development of the currency of the "Country of the Rising Sun" in the 1/2 channel Median Line Minute (106.90-105.60-104.20) with the prospect of reaching the warning line LWL61. 8 (103.50) of the Minor operational scale forks.
The layout of the #USDX movement options from May 4, 2020 is shown on the animated chart.
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The review is compiled without taking into account the news background, the opening of trading sessions of the main financial centers, and is not a guide to action (placing "sell" or "buy" orders).
Formula for calculating the dollar index:
USDX = 50.14348112 * USDEUR0.576 * USDJPY0.136 * USDGBP0.119 * USDCAD0.091 * USDSEK0.042 * USDCHF0. 036.
Where the power coefficients correspond to the weights of currencies in the basket:
Euro - 57.6 %;
Yen - 13.6 %;
Pound - 11.9 %;
Canadian dollar - 9.1 %;
Swedish Krona - 4.2 %;
Swiss franc - 3.6 %.
The first coefficient in the formula brings the index value to 100 on the starting date - March 1973, when the main currencies began to be freely quoted relative to each other.
