Let me bring to your attention a comprehensive analysis of the options for the movement of currency instruments #USDX, EUR / USD, GBP / USD and USD / JPY from August 30, 2019
Minuette operational scale (H4 time frame)
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US dollar index
The direction of the range breakdown :
- resistance level of 98.35 (control line UTL pitchfork Minuette operational scale fork);
- support level of 98.10 (the upper boundary of the 1/2 Median Line channel Minuette operational scale fork);
will determine the development of the movement of the dollar index #USDX from August 30, 2019.
The breakdown of the support level of 98.10 will determine the development of the movement of the dollar index within 1/2 Median Line channels of the Minuette operational scale - (98.10 - 97.80 - 97.45) and Minuette (97.70 - 97.50 - 97.30).
The upward movement of #USDX can be continued with the combined breakdown of the UTL control line (resistance level of 98.35) and the initial SSL line (98.40) of the Minuette operational scale fork, with the subsequent update of the local maximum 98.45 and the following targets of this movement will be - maximum 98.93 - warning line UWL38. 2 Minuette (99.10) - control line UTL Minuette (99.15).
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 30, 2019 will also receive its development depending on the direction of the breakdown of the range :
- resistance level of 1.1085 (the upper boundary of the 1/2 Median Line channel Minuette operational scale fork);
- support level of 1.1070 (start line SSL of the Minuette operational scale fork)
The breakdown of the resistance level of 1.1085 (the upper boundary of the 1/2 Median Line Minuette channel) will determine the development of the EUR / USD movement to the targets - the initial SSL Minuette line (1.1111) - the 1/2 Median Line channel (1.1145 - 1.1170 - 1.1195) of the Minuette operational scale fork.
A consecutive breakdown of the SSL start line (support level of 1.1070) of the Minuette operational scale fork and the LTL control line (1.1060) for the Minuette operational scale and 1/2 Median Line Minuette (1.1052) will make the continuation of the downward movement of the single European currency towards the targets relevant - the lower boundary of the 1/2 Median Line channel Minuette (1.1020) - warning line LWL38.2 Minuette (1.0985).
The details of the EUR / USD movement options are shown in the animated chart.
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Great Britain pound vs US dollar
On the other hand, the development of Her Majesty's GBP / USD currency movement from August 30, 2019 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channe (1.2240 - 1.2215 - 1.2190) of the Minuette operational scale fork. We look at the animated chart for movement details within this channel.
The breakdown of the resistance level of 1.2240 at the upper boundary of the 1/2 Median Line channel of the Minuette operational scale fork will determine the development of the upward movement of Her Majesty's currency to the targets - 1/2 Median Line Minuette (1.2295) - local maximum 1.2309 - control line UTL Minuette (1.2325) - upper channel boundary 1/2 Median Line Minuette (1.2375).
In case of breakdown of the lower boundary of the 1/2 Median Line Minuette channel (support level of 1.2190), the downward movement of GBP / USD can continue to the equilibrium zone (1.2165 - 1.2120 - 1.2080) of the Minuette operational scale fork with the prospect of reaching a minimum of 1.2015.
The details of the GBP / USD movement can be seen in the animated chart.
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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 August 30, 2019 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (107.00 - 106.55 - 106.15) of the Minuette operational scale fork. Look at the animated graphics for the movement details inside this channel.
The breakdown of the support level of 105.06 at the lower boundary of the 1/2 channel Median Line Minuette together with ISL38.2 Minuette (106.00) will make it possible to develop the USD / JPY movement within the equilibrium zone (106.00 - 105.45 - 104.90) of the Minuette operational scale fork taking into account the development of the boundaries of the equilibrium zone (105.85 - 105.59 - 105.30) and 1/2 Median Line channel (105.15 - 104.90 - 104.60) of the Minuette operational scale fork.
In case of breakdown of the upper boundary of the 1/2 Median Line channel (resistance level of 107.00) of the Minuette operational scale fork, the upward movement of the currency of the "country of the rising sun" can continue to the targets - control line UTL (107.46) of the Minuette operational scale fork - the initial SSL Minuette line (107.70) is the control line of UTL Minuette (108.40).
We look at the details of the USD / JPY movement 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 major 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