Minute operational scale (H4 time frame)
Where do we stop the growth of the main currency instruments against the dollar? Options for the development of the movement #USDX vs EUR/USD & GBP/USD & USD/JPY (H4) from July 23, 2020.
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US dollar index
The development of the movement of the dollar index #USDX from July 23, 2020 will be due to the development and direction of the breakdown of the range:
- resistance level of 95.00 - the initial line of the SSL of the Minute operational scale fork;
- support level of 94.90 - the LTL control line of the Minuette operational scale fork.
In the breakdown of the resistance level of 95.00 on the starting line SSL of the Minute operational scale fork, the movement of the dollar index can be continued to the boundaries of the channel 1/2 Median Line Minuette (95.17 - 95.27 - 95.37) in case of breakdown which the upward movement #USDX will be continued to the zone equilibrium (95.52 - 95.66 - 95.82) of the Minuette operational scale fork with the prospect of achieving the ultimate line FSL Minuette (96.30).
If the support level of 94.90 is broken on the control line LTL of the Minuette operational scale fork, the downward movement #USDX may continue to the borders of the channel 1/2 Median Line (94.35 - 94.00 - 93.65) of the Minute operational scale fork.
The layout of the #USDX movement options from July 20, 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 July 23, 2020 will also be determined by the development and direction of the breakdown of the range:
- resistance level of 1.1590 - the lower border of ISL38.2 of the balance zone of the Minuette operational scale fork;
- support level of 1.1565 - the initial SSL line of the Minute operational scale fork.
If the support level of 1.1565 breaks through on the initial line of the SSL fork of the Minute operational scale fork, the downward movement of the single European currency will be directed towards the goals:
initial SSL line (1.1490) of the Minuette operational scale fork;
ultimate Shiff Line Minuette (1.1390);
with the prospect of reaching the equilibrium zone (1.1360 - 1.1300 - 1.1240) a fork of the operating scale Minute.
At the breakdown of ISL38. 2 Minuette-resistance level 1.1590-the development of the EUR/USD movement may continue in the equilibrium zone (1.1590 - 1.1630 - 1.1670) forks operating scale Minuette and channel 1/2 Median Line (1.1670 - 1.1705 - 1.1755) of the Minute operational scale fork.
The EUR/USD movement options from July 23, 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 July 23, 2020 will be due to the development of the border levels of the 1/2 Median Line channel (1.2665 - 1.2695 - 1.2720) of the Minuette operational scale fork - the markup of the movement inside this channel is shown on the animated chart.
A breakdown of the support level of 1.2665 at the lower border of the channel 1/2 Median Line Minuette will make it relevant to continue the movement of GBP/USD in the equilibrium zone (1.2665 - 1.2630 - 1.2600) of the Minuette operational scale fork, with the prospect of reaching the initial SSL line (1.2511) after the breakout of ISL61.8 Minuette (1.2600) and the local minimum 1.2478.
A breakout of the 1.2720 resistance level at the upper border of the 1/2 Median Line channel on the Minuette operational scale will direct the movement of Her Majesty's currency to the following levels:
- 1.2760 - initial SSL Minuette line;
- 1.2767 - local maximum.
- 1.2800 - UTL Minuette control line;
- 1.2812 - maximum.
We look at the options for the movement of GBP/USD from July 23, 2020 on the animated chart.
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US dollar vs Japanese yen
And the movement of the currency of the "Land of the Rising Sun" USD/JPY from July 23, 2020 will depend on the development and direction of the breakdown of the range :
- resistance level of 107.30 - the initial line of the SSL of the Minuette operational scale fork;
- support level 107.00 at the upper border of the channel 1/2 Median Line Minuette
If the resistance level of 107.30 is broken on the initial line of the SSL of the Minuette operational scale forks, the upward movement of USD/JPY will be directed to the targets:
- control line UTL Minuette (107.42);
- local maximum 107.54;
- warning line UWL161.8 Minute (107.70);
- maximum 108.17.
In the breakdown of support level of 107.00 for the pair of "Land of the Rising Sun" will continue in the channel borders 1/2 Median Line (107.00 - 106.85 - 106.70) and equilibrium zone (106.70 - 106.55 - 106.35) of the Minuette operational scale fork with the prospect of achieving the ultimate line FSL Minuette (105.75) and the upper border of the channel 1/2 Median Line (105.55) of the Minuette operational scale fork.
The marking of USD/JPY movement options since July 23, 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 sterling - 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.
