Minuette operational scale (H4)
May options for the development of the movement of the dollar index #USDX and the main cross-instruments EUR/GBP, GBP/JPY, and EUR/JPY in the daily timeframe.
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US dollar index
In May 2020, the development of the movement of the dollar index #USDX will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (100.90-99.90-98.95) of the Minor operational scale -see the details of working out this channel on the animated chart.
If the lower border of the 1/2 medium Line Minor channel is broken - the support level of 98.95 - the development of the dollar index movement will again occur in the equilibrium zone (99.55-98.57-97.55) of the Minor operational scale forks, and if there is a breakdown of ISL61.8 Minor (97.55), then the downward movement of #USDX can be continued to the final line of FSL Minor (96.00).
A breakdown of the resistance level of 100.90 at the upper border of the 1/2 Median Line channel in the Minor operational scale will make it relevant to develop the upward movement of the dollar index to the borders of the 1/2 Median Line channel (102.20-103.25-104.30) of the Minuette operating scale fork.
The layout of the #USDX movement options in May 2020 is shown on the animated chart.
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Euro vs Great Britain pound
The development of the movement of the "main" EUR/GBP cross-instrument in May 2020 will be determined by the development and direction of the breakdown of the range:
- resistance level of 0.8780 on the initial line of the SSL of the Minuette operational scale fork;
- support level of 0.8705 on the control line LTL of the Minuette operational scale fork.
When the initial line is broken, SSL Minute - the resistance level of 0.8780 - the development of the upward movement of EUR/GBP to the targets:
- ultimate Shiff Line Minor (0.8880);
- SSL Minor starting line (0.8925);
- channel 1/2 Median Line Minor (0.9150-0.9230-0.9320).
A breakdown of the LTL control line of the Minuette operational scale fork - the support level of 0.8705 - followed by an update of the local minimum of 0.8670 will direct the downward movement of this cross-instrument to the boundaries of the equilibrium zone (0.8510-0.8380-0.8240) of the Minor operational scale fork.
The options for EUR/GBP movement in May 2020, depending on the processing of the 1/2ML Minute channel, are shown on the animated chart.
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Great Britain pound vs Japanese yen
The development of the movement of the cross-instrument GBP/JPY in May 2020 will also be due to the development and direction of the breakdown of the range:
- resistance of 131.10 on line reaction RL38.2 trading recommendations;
- support level of 129.30 at the upper boundary ISL38.2 equilibrium zone of the Minor operational scale fork.
Breakdown of the reaction line RL38. 2 Minute - the resistance level of 131.10 will direct the movement of GBP/JPY to the borders of the channel 1/2 Median Line (132.05-134.85-137.45) and equilibrium zones (138.30-141.90-145.45) of the Minuette operational scale fork.
If the support level of 129.30 (ISL38.2 Minor) breaks, the movement of this cross-instrument will again occur in the equilibrium zone (129.30 - 125.70 - 122.50) of the Minor operational scale fork.
Options for the movement of GBP/JPY in May 2020 are shown on the animated chart.
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Euro vs Japanese yen
Range development and breakdown direction:
- resistance level is 115.25 at the lower border of the channel 1/2 Median Line of the Minor operational scale forks;
- support level of 114.55 on the initial SSL line of the Minuette operational scale fork.
And it will determine the development of the EUR/JPY cross-instrument movement in May 2020.
Breakdown of the resistance level 115.25 return of the development of the EUR/JPY movement to the 1/2 channel Median Line Minor (115.25-116.45-117.65) with the prospect of reaching the borders of the equilibrium zone (118.05-119.15-120.35) of the Minuette operational scale fork.
In the event of a breakdown of the initial SSL of the Minuette operational scale fork - support level 114.55 - and the subsequent update of the local minimum 114.40 - the downward movement of EUR/JPY can be continued to the warning line LWL38. 2 (112.50) of the Minor operational scale fork with the prospect of reaching the control line LTL Minor (111.00).
The markup of the EUR/JPY movement options in May 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 V %;
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.
