Let's continue to prepare the options for the movement of trading instruments #USDX, EUR / USD, GBP / USD and USD / JPY on August 27, 2019 according to the results of the previous week.
Minuette operational scale (H4 time frame)
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US dollar index
The movement of the dollar index #USDX from August 27, 2019 will depend on the direction of the breakdown of the range :
- resistance level of 98.05 (the upper boundary of the 1/2 Median Line channel of the Minuette operational scale fork);
- support level of 97.90 (initial line SSL of the Minuette operational scale fork).
The breakdown of the upper boundary of the 1/2 Median Line channel (resistance level of 98.05) of the Minuette operational scale fork will make the development of the upward movement of the dollar index relevant, the goals of which are the control line UTL (98.30) of the Minuette operational scale fork - the initial line SSL Minuette (98.45) - local maximum 98.93 - control line UTL Minuette (99.15).
Returning the #USDX below the SSL start line (support level of 97.90) of the Minuette operational scale fork - option for developing the movement #USDX to goals - 1/2 Median Line Minuette (9 7.75) - lower boundary of the 1/2 Median Line Minuette channel (97.40) - local minimum 97.22 - the upper boundary of ISL38.2 (96.95) the equilibrium zone of the Minuette operational scale fork.
The details of the #USDX movement are presented in the animated chart.
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Euro vs US dollar
The movement of the single European currency EUR / USD from August 27, 2019 will also receive its development depending on the direction of the breakdown of the range :
- resistance level of 1.1135 (the lower boundary of the 1/2 Median Line channel Minuette operational scale fork);
- support level of 1.1100 (the upper boundary of the 1/2 Median Line channel Minuette operational scale fork)
The breakdown of the resistance level of 1.1135 will determine the development of the EUR / USD movement in the 1/2 Median Line Minuette channel (1.1135 - 1.1163 - 1.1185), with a breakdown of the upper boundary (1.1185) of which it will be possible to continue the development of the upward movement of the single European currency to the boundaries of the equilibrium zones of the Minuette operational scales fork (1.1220 - 1.1265 - 1.1320) and Minuette (1.1235 - 1.1285 - 1.1340).
In case of breakdown of the support level of 1.1100, the development of the EUR / USD movement will continue in the 1/2 Median Line channel (1.1100 - 1.1070 - 1.1035) of the Minuette operational scale with the prospect of updating the local minimum of 1.1027.
The details of the EUR / USD movement options are shown in the animated chart.
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Great Britain pound vs US dollar
Similarly, now for Her Majesty's currency, the development of the GBP / USD movement from August 27, 2019 will be determined by the direction of the breakdown of the range :
- resistance level of 1.2225 (the lower boundary of the channel 1/2 Median Line Minuette operational scale fork);
- support level of 1.2175 at the boundary of the red zone of the Minuette operational scale fork.
The breakdown of the resistance level of 1.2225 - the development of Her Majesty's currency movement will continue in the 1/2 Median Line Minuette channel (1.2225 - 1.2310 - 1.2395) with the prospect of reaching the lower boundary of the ISL38.2 (1.2485) zone of equilibrium of the Minuette operational scale fork.
The breakdown of the support level of 1.2175 at the boundary of the red zone of the Minuette operational scale fork, will continue the downward movement of GBP / USD which can be directed to the boundaries of the 1/2 Median Line channel (1.2130 - 1.2090 - 1.2040) and the equilibrium zone (1.2065 - 1.2000 - 1.1940) of the Minuette operational scale.
The details of the GBP / USD movement can be seen in the animated chart.
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US dollar vs Japanese yen
On the other hand, the development of the movement of the currency of the "land of the rising sun" USD / JPY from August 27, 2019 will be due to the development and direction of the breakdown of the boundaries of the equilibrium zone (106.20 - 105.65 - 105.06) of the equilibrium zone of the Minuette operational scale fork. We look at the animated chart for the details of the movement inside this zone schedule.
The breakdown of the support level of 105.06 at the lower boundary of the ISL61.8 zone of equilibrium of the Minuette operational scale fork will lead to updating the local minimum 104.47 and reaching the control line LTL (103.60) of the Minuette operational scale fork.
On the contrary, the breakdown of the resistance level of 106.20 at the upper boundary of the ISL38.2 equilibrium zone of the Minuette operational scale fork will determine the development of the upward movement of the currency of the country of the rising sun to the boundaries of the equilibrium zone (106.65 - 107.20 - 107.65) of the Minuette operational scale fork with the prospect of reaching the initial SSL Minute line (107.90)
The details of the USD / JPY movement are presented in the animated chart.
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The review is made without taking into account the news background. The opening of trading sessions of the main financial centers does not serve as a guide to action (placing orders "sell" or "buy").
The 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 the 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 leads the index to 100 at the start date of the countdown - March 1973, when the main currencies began to be freely quoted relative to each other.
The material has been provided by InstaForex Company - www.instaforex.com