Minor operational scale (Daily)
The first month of fall - is the US dollar recovering? Options for the development of the movement for #USDX vs EUR/USD & GBP/USD & USD/JPY (Daily) on September 7, 2020.
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US dollar index
From September 7, 2020, the movement of the dollar index #USDX will continue to determine the development and direction of a breakout of the channel borders 1/2 Median Line (92.65 - 92.90 - 93.25) of the Minute operational scale fork - we look at the animated chart for details of working out the boundaries of the 1/2ML Minute channel.
If the resistance level of 93.25 is broken at the upper border of the 1/2 Median Line Minute channel, it will be possible for the dollar index to reach the equilibrium zone (93.45 - 94.00 - 94.55) of the Minute operational scale fork with the prospect of continuing movement already in the 1/2 Median Line channel (94.80 - 95.80 - 96.75) of the Minor operational scale fork.
In case of a breakdown of the support level of 92.65 at the lower border of the 1/2 Median Line channel of the Minute operational scale fork, the downward movement of the dollar index can be directed to the targets:
- SSL initial line (91.95) of the Minor operational scale fork;
- local minimum 91.72;
- control line LTL Minor (91.55);
- control line LTL Minute (91.25);
- warning line LWL38.2 Minor (89.05).
The layout of the #USDX movement options from September 7, 2020 is shown in the animated chart.
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Euro vs US dollar
From August 24, 2020, the single European currency EUR/USD will also begin to develop its movement depending on the direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.1845 - 1.1895 - 1.1945) of the Minute operational scale fork - see the animated chart for details of the movement within this channel.
In case of a breakdown of the support level of 1.1845 at the lower border of the 1/2 Median Line Minute channel, the EUR/USD movement may continue to the boundaries of the equilibrium zone (1.1810 - 1.1750 - 1.1680) of the Minute operational scale fork and the 1/2 Median Line channel (1.1700 - 1.1600 - 1.1500 ) of the Minor operational scale fork.
The breakdown of the resistance level of 1.1945 at the upper border of the 1/2 Median Line channel of the Minute operational scale fork will make it relevant to continue the movement of the single European currency towards the targets:
- initial line SSL (1.1990) of the Minor operational scale fork;
- local maximum 1.2011;
- initial line SSL Minute (1.2040);
- control line UTL Minute (1.2085);
- with the prospect of reaching the warning line UWL38.2 Minor (1.2300).
Options for the movement of EUR/USD from September 7, 2020 are shown on the animated chart.
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Great Britain pound vs US dollar
The movement of Her Majesty's currency GBP/USD from September 7, 2020 will continue to develop in the equilibrium zone (1.3481 - 1.3195 - 1.2910) of the Minor operational scale fork, taking into account the development of the boundaries of the 1/2 Median Line channel (1.3265 - 1.3195 - 1.3110) and the equilibrium zone (1.3050 - 1.2910 - 1.2775) of the Minute operational scale fork - details of working out the above levels of fork lines are presented on the animated chart.
In case of a breakdown of the support level of 1.2775 at the lower border of ISL61.8 of the equilibrium zone of the Minute operational scale fork, the downward movement of GBP/USD will be directed to the final FSL Minute line (1.2335).
If the resistance level of 1.34881 is consistently broken at the upper limit of ISL61.8 of the Minor operational scale fork and the UTL (1.3530) control line of the Minute operational scale fork, the upward movement of Her Majesty's currency may continue to the reaction line of RL161.8 (1.3785) of the Minor operational scale fork.
We look at the animated chart for the options for the movement of GBP/USD from September 7, 2020.
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US dollar vs Japanese yen
The development of the movement of the currency of the "Land of the Rising Sun" USD/JPY from September 7, 2020 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (105.10 - 105.70 - 106.30) of the Minute operational scale fork - see the animated chart for details of the movement within this channel.
The breakdown of the resistance level of 106.30 on the upper border of the channel 1/2 Median Line Minute will be the actual continuation of the upward movement of USD/JPY to the boundaries of the equilibrium zones of the Minute operational scale fork (107.40 - 108.25 - 109.10) and Minor (107.70 - 109.10 - 110.40).
A breakdown of the lower border of the 1/2 Median Line channel of the Minute operational scale fork - support level of 105.10 - will make it possible for the USD/JPY to continue the downward movement to the boundaries of the 1/2 Median Line channel (104.65 - 103.30 - 102.00) of the Minor operational scale fork.
The markup of the USD/JPY movement options from September 7, 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.
