Minuette operational scale (H4)
What will happen in early May with the dollar index and the main cross-tools? Options for the development of the movement #USDX vs EUR/GBP, GBP/JPY, and EUR/JPY (H4) on May 1, 2020.
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US dollar index
From April 17, 2020, the movement of the dollar index #USDX will continue depending on the direction of the breakout of the range:
- resistance level of 99.55 at the lower border of the channel 1/2 Median Line Minuette;
- support level of 99.25 at the upper boundary of the ISL38.2 balance zone of the Minuette operational scale forks.
Breakout of ISL38.2 Minuette - support level of 99.25 - the movement of the dollar index will continue in the equilibrium zone (99.25-98.82-98.50) of the Minuette operational scale forks.
In the case of breakdown of the resistance level of 99.55, the movement of #USDX can be continued to the boundaries of the channel 1/2 Median Line (99.55-99.80-100.05) of the Minuette operational scale forks with the prospect of reaching the starting line SSL Minuette (100.30) and local maximum of 100.87.
The layout of the #USDX movement options from May 1, 2020 is shown on the animated chart.
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Euro vs Great Britain pound
The movement of the "main" cross-instrument EUR/GBP from May 1, 2020 will be determined by the development and direction of the breakdown of the boundaries of the equilibrium zone (0.8635-0.8660-0.8690) of the Minuette operational scale forks - we look at the animated chart for details of movement inside this channel.
A consistent break of the upper border ISL38.2 of the equilibrium zone of the Minuette operational scale forks - resistance level of 0.8690 - and the final line FSL (0.8710) of the Minuette operational scale forks will make the development of the upward movement of EUR/GBP to the boundaries of the channel 1/2 Median Line Minuette (0.8745-0.8770-0.8790) with the prospect of achieving the UTL Minuette (0.8860) control line with this cross-instrument.
In case of breakdown of the lower boundary of the ISL61.8 equilibrium zone of the Minuette operational scale forks - support level of 0.8635 - the downward movement of EUR/GBP can be continued to the goals:
- final line FSL Minuette (0.8540);
- warning line LWL38.2 (0.8515) of the Minuette operational scale forks.
The EUR/GBP movement options from May 1, 2020, depending on the 1/2ML Minute channel processing, are shown on the animated chart.
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Euro vs Japanese yen
The development of the movement of the EUR/JPY cross-instrument from May 1, 2020 will be due to the development and direction of the breakdown of the boundaries of the equilibrium zone (114.70-115.40-116.20) of the Minuette operational scale forks - the movement markings inside this zone are presented on the animated chart.
Breakdown of the upper boundary of the ISL38.2 equilibrium zone of the Minuette operational scale forks - resistance level of 116.20 - will direct the movement of EUR/JPY to the boundaries of the channels 1/2 Median Line of the Minuette operational scale forks - Minuette (116.45-116.80-117.10) and Minute (116.80-117.45-118.10).
If the lower border of ISL61.8 of the Minuette operational scale forks equilibrium zone is broken, the support level is 114.70. The downward movement of EUR/JPY can be continued to the final line of FSL Minute (112.20).
From May 1, 2020, we look at the EUR/JPY movement options on the animated chart.
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Great Britain pound vs Japanese yen
The development and direction of the breakdown of the channel boundaries 1/2 Median Line (132.80-133.20-133.60) of the Minuette operational scale forks will determine the development of the GBP/JPY movement from May 1, 2020 - the marking of movement inside the 1/2ML Minuette channel is shown in the animated chart.
Breakdown of the upper border of the channel 1/2 Median Line of the Minuette operational scale forks - resistance level of 133.60 - a continuation of the upward movement of EUR/JPY to 1/2 Median Line Minute (134.85) and the boundaries of the equilibrium zone (135.05-135.72-136.35) of the Minuette operational scale forks.
In case of a breakdown of the lower border of the channel 1/2 Median Line of the Minuette operational scale forks - support level of 132.80 - the downward movement of GBP/JPY can be continued to the goals:
- lower border of the channel 1/2 Median Line Minute (132.20);
- local minimum 131.88;
- LTL Minuette control line (131.50).
The markup of the EUR/JPY movement options from May 1, 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 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.
