Minute operational scale (H4)
How will the movement of major currency instruments develop #USDX vs EUR/USD & GBP/USD & USD/JPY in the H4 timeframe from July 17, 2020 - an overview of options.
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US dollar index
From August 17, 2020, the development of the #USDX dollar index will be determined by the development and direction of the breakdown of the boundaries of the 1/2 Median Line (92.95 - 93.10 - 93.30) of the Minuette operational scale fork - see the animated chart for details of the development of these levels.
In case of breaking the resistance level of 93.30 on the upper border of the channel 1/2 Median Line of the Minuette operational scale fork, the development of the upward movement #USDX can be continued to the objectives:
- initial line SSL Minuette (93.45);
- upper limit of the channel 1/2 Median Line Minute (93.65);
- with the prospect of updating the local maximum 93.88 - 93.98 and reaching the lower limit of ISL38.2 (94.15) balance zone of the Minute operational scale fork.
A consistent break of the support level at 92.95 lower border of the channel 1/2 Median Line Minuette and lower border of the channel 1/2 Median Line (92.88) of the Minuette operational scale fork will make the actual continuation of the downward movement of the dollar index to the borders of the zone of equilibrium (92.60 - 92.30 - 92.00) of the Minuette operational scale fork.
Options for the #USDX movement from August 17, 2020 is shown on the animated chart.
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Euro vs US dollar
The development of the movement of the single European currency EUR/USD from August 17, 2020 will also depend on the development and direction of the breakdown of the boundaries of the 1/2 Median Line (1.1800 - 1.1820 - 1.1850) of the Minuette operational scale fork - the movement markings within this channel are shown in the animated chart.
A breakdown of the support level of 1.1800 at the lower border of the 1/2 medium Line Minuette channel will direct the movement of EUR/USD towards the goals:
- initial SSL line (1.7985) of the Minuette operational scale fork;
- equilibrium zones (1.1745 - 1.1675 - 1.1610) of the Minute operational scale fork.
The breakdown of the resistance level of 1.1850 on the upper border of the channel 1/2 Median Line Minuette will determine the development of the single European currency within the boundaries of the channel 1/2 Median Line (1.1835 - 1.1880 - 1.1920) of the Minute operational scale fork and zone equilibrium (1.1900 - 1.1945 - 1.1985) of the Minuette operational scale fork.
We look at the EUR/USD movement options from August 17, 2020 on an animated chart.
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Great Britain pound vs US dollar
The development of the movement of Her Majesty's currency GBP/USD from August 17, 2020, as in the first 2 cases, will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.3085 - 1.3110 - 1.3135) of the Minuette operational scale fork - marking of movement within this channel is shown on the animated chart.
Consecutive breakdown of the lower border of the channel 1/2 Median Line Minuette - the support level of 1.3085 and the initial SSL line (1.3065) of the Minuette operational scale fork will make it relevant to continue the downward movement of the currency of Her Majesty to the goals:
- local minimum 1.3004 - 1.2980;
- initial SSL line (1.2910) of the Minute operational scale fork;
- upper bound of the channel 1/2 Median Line Minute (1.2845).
The breakdown of the resistance level of 1.3135 on the upper border of the channel 1/2 Median Line Minuette will be possible continuation of the upward movement of GBP/USD to the boundaries of the zones equilibrium of the Minuette operational scale fork (1.3185 - 1.3230 - 1.3265) and Minute (1.3210 - 1.3315 - 1.3420).
For details of the development of the GBP/USD movement from August 17, 2020, see the animated chart.
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US dollar vs Japanese yen
The currency of the "Land of the Rising Sun" USD/JPY from August 17, 2020 will continue to move depending on the direction of the breakdown of the range:
- resistance level of 106.80 - the upper border of ISL61.8 equilibrium zone of the Minute operational scale fork;
- support level of 106.60 - the upper border of the 1/2 medium Line channel of the Minuette operational scale fork.
Joint breakout of resistance levels:
- 106.80 at the upper limit of ISL38.2 balance zone of the Minute operational scale fork;
- 107.00 on the initial line of the SSL of the Minuette operational scale fork;
- 107.15 on the line of control UTL Minuette;
- it will be relevant to reach the maximum price of 107.54 and 108.17.
If the support level of 106.60 is broken, the movement of the "Land of the Rising Sun" currency will continue within the boundaries of the 1/2 Median Line channel (106.60 - 106.45 - 106.35) and equilibrium zones (106.25 - 106.00 - 105.75) of the Minuette operational scale fork.
The markup of the development of the USD/JPY movement from August 17, 2020 is presented on an 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.
