Minuette operational scale (H1)

Reports from the forex-front and operational review of options for the movement of EUR/USD & GBP/USD in the H1 time frame from August 19-21, 2020.

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Euro vs US dollar

The development of the movement of the single European currency EUR/USD on August 19-20, 2020 will depend on the development and direction of the breakdown of the borders of the 1/2 Median Line channel (1.1960 - 1.1946 - 1.1935) of the Micro operational scale forks - the movement markings within this channel are shown in the animated chart.

A breakdown of the support level of 1.1935 at the lower border of the 1/2 medium Line Micro channel will direct the movement of EUR/USD to the borders of the equilibrium zone (1.1905 - 1.1885 - 1.1865) of the Micro operational scale forks and 1/2 medium Line channel (1.1855 - 1.1830 - 1.1805) of the Minuette operational scale fork.

The breakdown of the resistance level of 1.1960 at the upper border of the 1/2 Median Line Micro channel will determine the development of the movement of the single European currency within the equilibrium zone (1.1960 - 1.2000 - 1.2040) of the Minuette operational scale.

We look at the EUR/USD movement options on August 19-21, 2020 on the animated chart.

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Great Britain pound vs US dollar

The development of the movement of Her Majesty's currency GBP/USD on August 19-21, 2020 will also be determined by the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.3245 - 1.3230 - 1.3215) of the Micro operational scale forks - the movement markings within this channel are shown in the animated chart.

In case of breakdown of the lower border of the 1/2 Median Line Micro channel - support level of 1.3215 - the downward movement of GBP/USD can be continued to the boundaries of the equilibrium zone (1.3205 - 1.3190 - 1.3170) of the Micro operational scale, and in case of breakdown of ISL61.8 Micro (1.3170), it will become possible for the price of the instrument to reach the equilibrium zone (1.3145 - 1.3110 - 1.3075) of the Minuette operational scale fork.

If the resistance level of 1.3245 breaks at the upper border of the channel 1/2 Median Line Micro, it will be possible to continue the development of the upward movement of GBP/USD to the goals:

• UTL control line (1.3270) of the Minuette operational scale fork;
• UTL control line (1.3295) of the Micro operational scale fork;
• Minuette operational scale fork warning lines - UWL38.2 (1.3315) - UWL61.8 (1.3350) - UWL100.0 (1.3405).

Details of the development of the GBP/USD movement on August 19-21, 2020 are 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.