We consider what will happen with the development of the movement of currency instruments in a comprehensive manner - having a specific gravity of 83.1% in the calculation of the dollar index - EUR / USD, GBP / USD and USD / JPY from August 08, 2019.
Minuette operational Scale (H4 time frame)
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US dollar index
The movement of the dollar index #USDX from August 08, 2019 will receive its development depending on the direction of the breakdown of the range :
- resistance level of 97.45 (the initial SSL line of the Minuette operational scale fork);
- support level of 97.35 (upper boundary of ISL38.2 of the Minuette operational scale fork).
A combined breakdown of ISL38.2 Minuette (support level of 97.35) and the lower border (support level of 97.25) of the 1/2 Median Line channel Minuette will confirm that the further development of the movement of the dollar index will begin to occur within the equilibrium zone (97.35 - 96.90 - 96.40) of the Minuette operational scale.
With the breakdown of the resistance level of 97.45 (the starting line SSL Minuette), followed by the breakdown of 1/2 Median Line Minuette (97.60), it will be possible to develop an upward movement of #USDX to the upper boundary of the 1/2 Median Line channel (97.95) of the Minuette operational scale fork and the equilibrium zone (98.35 - 98.60 - 98.90) 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
As further as August 08, 2019, the development of the movement of the single European currency EUR / USD will begin to occur. It will be determined by the direction of the breakdown of the range :
- resistance level of 1.1230 (upper boundary of the 1/2 Median Line channel Minuette);
- support level of 1.1220 (lower boundary of ISL38.2 of the Minuette operational scale fork).
The breakdown of the upper boundary of the 1/2 Median Line channel Minuette (resistance level of 1.1230) will determine the development of the movement of the single European currency inside the equilibrium zone (1.1220 - 1.1280 - 1.1335) of the Minuette operational scale fork, depending on the development of the local maximum 1.1251.
The breakdown of the support level of 1.1220 (the lower boundary of the ISL38.2 equilibrium zone of the Minuette operational scale fork) will direct the development of the EUR / USD movement to the targets - 1/2 Median Line Minuette (1.1190) - the lower boundary of the 1/2 Median Line channel Minuette (1.1150) and another option - reaching the boundaries of the equilibrium zone (1.1125 - 1.1085 - 1.1055) of the Minuette operational scale fork.
The details of the EUR / USD movement options are shown in the animated chart.
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Great Britain pound vs US dollar
The currency of Her Majesty GBP / USD from August 08, 2019 will also develop its movement depending on the direction of the breakdown of the range :
- resistance level of 1.2185 (lower boundary of the ISL38.2 equilibrium zone of the Minuette operational scale fork);
- support level of 1.1220 (reaction line RL100.0 Minuette).
With the breakdown of ISL38.2 Minuette (resistance level of 1.2185), the development of Her Majesty's currency movement will continue to move in the equilibrium zone (1.2185 - 1.2230 - 1.2275) of the Minuette operational scale fork, and if there will be a breakdown of ISL61.8 Minuette (1.2275), then the upward movement of the GBP / USD may continue to the final line FSL Minuette (1.2415).
On the contrary, if GBP / USD returns below the RL100.0 Minuette reaction line (support level of 1.2120), the downward movement can continue to the boundaries of the 1/2 Median Line Minuette channel (1.2100 - 1.2070 - 1.2035) with the prospect of reaching the LTL control line (1.1950) of the Minuette operational scale.
The details of the GBP / USD movement can be seen on the animated chart.
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US dollar vs Japanese yen
The development of the movement of the "currency of the country of the rising sun" USD / JPY from August 08, 2019 will also be determined by the direction of the breakdown of the range :
- resistance level of 105.95 (final Schiff Line Minuette);
- support level of 105.65 (warning line LWL38.2 of the Minuette operational scale fork).
The breakdown of the support level of 105.65 (warning line LWL38.2 of the Minuette operational scale fork) will make it relevant to continue the development of the downward movement of USD / JPY to targets - the control line LTL Minuette (105.40) - the warning line LWL61.8 Minuette (105.00) - the final line FSL Minuette (104.60) - warning line LWL100.0 Minuette (104.60).
The breakdown of the final Schiff Line Minuette (resistance level of 105.95) will direct the development of the currency of the "land of the rising sun" to the boundaries of the equilibrium zone (106.30 - 106.80 - 107.30) and 1/2 Median Line channel (107.15 - 107.55 -107.95) of the Minuette operational scale.
We look at the details of the USD / JPY movement on the animated chart.
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