Let us consider the comprehensive analysis of options for the development of the movement of currency instruments #USDX vs EUR / USD vs GBP / USD from August 2, 2019
Minuette operating scale (H4)
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US dollar Index
The movement of the dollar index #USDX from August 2, 2019 will occur depending on the direction of the range breakdown :
- resistance level of 99.05 (warning line UWL38.2 Minuette operating scale fork);
- support level of 98.60 (upper boundary of ISL61.8 equilibrium zone of the Minuette operating scale fork).
The breakdown of ISL61.8 Minuette (support level of 98.60) will determine the development of the dollar index movement in the equilibrium zone ( 98.60 - 98.40 - 98.20 ) of the Minuette operational scale, and if there is a breakdown of the lower boundary of ISL38.2 (98.20) of this zone, then the downward movement #USDX can be continued to the boundaries of the 1/2 Median Line channel Minuette (97.95 - 97.80 - 97.65), and as an option - reaching the boundaries of the equilibrium zone (97.55 - 97.30 - 96.95) of the Minuette operational scale fork.
In case of breakdown of the resistance level of 99.05 (warning line UWL38.2 of the Minuette operating scale fork), the upward movement of the dollar index can be continued towards the targets - the final FSL line (99.20) of the Minuette operational scale fork - warning UWL61.8 Minuette (99.40) - warning UWL100 .0 Minuette (99.90).
The details of the #USDX movement are shown in the animated graphics.
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Euro vs US dollar
Similar to the case of the dollar index, the development of the movement of the single European currency EUR / USD from August 2, 2019 will also be due to the direction of the range breakdown:
- resistance level of 1.1060 (the lower boundary of the 1/2 Median Line channel of the Minuette operating scale fork);
- support level of 1.1040 (warning line LWL38.2 Minuette operating scale fork).
The breakdown of the resistance level of 1.1060 will make it possible to develop the movement of a single European currency within the 1/2 of the Median Line channel (1.1060 - 1.1075 - 1.1090) of the Minuette operational scale, and if there is a sequential breakdown of the upper boundary (1.1090) of this channel and the initial SSL line (resistance level of 1.1100) Minuette operating scale fork, then the upward movement of this instrument will continue to the final Schiff Line Minuette (1.1125) and the equilibrium zone (1.1150 - 1.1170 - 1.1190) of the Minuette operating scale fork.
On the other hand, if the EUR / USD returns below the support level at 1.1040 on the warning line LWL38.2 of the Minuette operational scale fork, it will be possible to continue the downward movement of the single European currency to the targets - the control line LTL (1.1015) of the Minuette operational scale fork - warning line LWL61.8 Minuette (1.1000) - warning line LWL100.0 Minuette (1.0940).
The details of the movement option for the EUR/USD pair are shown in the animated graphics.
Great Britain pound vs US dollar
The development of the movement of Her Majesty's currency GBP / USD from August 2, 2019 will also be determined by the direction of the range breakdown :
- resistance level of 1.2130 (the lower boundary of the 1/2 Median Line channel of the Minuette operating scale fork);
- support level of 1.2095 (the starting line is SSL for the Minuette operating scale).
If the resistance level of 1.2130 is broken down, then the development of the GBP / USD movement will continue in the 1/2 Median Line Minuette channel (1.2130 - 1.2155 - 1.2180), well, and, accordingly, during the breakdown of the upper boundary (1.2180) of the mentioned channel, it is confirmed that the upward movement of this currency instrument can be extended to the boundaries of the equilibrium zones of the Minuette operational scales fork - Minuette (1.2215 - 1.2350 - 1.2490) and Minuette (1.2240 - 1.2280 - 1.2325).
However, the breakdown of the SSL Minuette initial line (support level of 1.2095) will continue the development of Her Majesty's downward movement to the control LTL (1.2035) and precautionary LWL38.2 (1.2020) - LWL61.8 (1.1975) - LWL100.0 (1.1900) lines of the Minuette operational scale fork.
The details of the GBP / USD movement options are presented in the animated chart.
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The review was compiled 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 is :
USDX = 50.14348112 * USDEUR0.576 * USDJPY0.136 * USDGBP0.119 * USDCAD0.091 * USDSEK0.042 * USDCHF0.036.
where power ratios 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 gives the index value to 100 on the starting date - 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