Let me bring to your attention, in an integrated form, the development options for the movement of currency instruments #USDX, EUR / USD, GBP / USD and USD / JPY from September 27, 2019.
Minuette operational scale (H4 time frame)
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US dollar index
Starting from September 27, 2019, the development of the #USDX dollar index movement will continue to be determined by the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (99.05 - 98.90 - 98.75) of the Minuette operational scale fork. We look at the animated chart for working out the levels above.
A combined breakdown of the upper boundary of the 1/2 channel Median Line Minuette (resistance level of 99.05) and the initial SSL line (99.13) of the Minuette operational scale fork will make it relevant to continue the development of the upward movement of the dollar index to targets - local maximum 99.37 - final Schiff Line Minuette (99.50) - control line UTL Minuette (99.60) - equilibrium zone (99.70 - 99.95 - 100.25) of the Minuette operational scale fork.
On the contrary, in case of breakdown of the lower boundary of the 1/2 Median Line channel (support level of 98.75) of the Minuette operational scale forks, it will be possible to develop a downward movement of #USDX to the boundaries of the 1/2 Median Line channel (98.55 - 98.20 - 97.85) of the Minuette operational scale forks.
The details of the #USDX movement are presented in the animated chart.
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Euro vs US dollar
From September 27, 2019, the movement of the single European currency EUR / USD will continue to depend on the development and direction of the breakdown of the boundaries of 1/2 Median Line channel (1.0990 - 1.0965 - 1.0940) of the Minuette operational scale fork. The movement markings inside the mentioned channel are shown in the animated chart.
In case of breakdown of the lower boundary of the 1/2 Median Line channel (support level of 1.0940) of the Minuette operational scale fork, the outgoing movement of the single European currency may continue to target - local minimum 1.0922 - warning line LWL61.8 Minuette (1.0885) - control line LTL Minuette (1.0845)
Meanwhile, the breakdown of the upper boundary of the 1/2 Median Line channel (resistance level of 1.0990) of the Minuette operational scale fork will confirm that further development of the EUR / USD movement will begin to occur in the 1/2 Median Line Minuette channel (1.0990 - 1.1015 - 1.1035) with the prospect of reaching the equilibrium zone boundaries (1.1070 - 1.1110 - 1.1160) 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
On the other hand, the development of Her Majesty's GBP / USD currency movement from September 27, 2019 will be determined by the direction of the breakdown of the range :
- resistance level of 1.2385 (the boundary of the red zone of the Minuette operational scale fork);
- support level of 1.2302 (upper boundary channel of 1/2 Median Line of the Minuette operational scale fork)
In case of breakdown of the support level of 1.2302, the development of Her Majesty's currency movement will continue in the 1/2 Median Line channel (1.2302 - 1.2220 - 1.2130) of the Minuette operational scale fork.
However, the breakdown of the resistance level 1.2385 at the boundary of the red zone of the Minuette operational scale fork, it will become possible to develop an upward movement of GBP / USD towards the targets - the lower boundary of the ISL38.2 (1.2420) equilibrium zone of the Minuette operational scale fork- the zone of equilibrium (1.2455 - 1.2500 - 1.2545) of the Minuette operational scale fork - the Median Line Minuette (1.2570).
The details of the GBP / USD movement can be seen in the animated chart.
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US dollar vs Japanese yen
Similarly, the currency movement of the "country of the rising sun" USD / JPY from September 27, 2019 will also depend on the development and direction of the breakdown of the range :
- resistance level of 107.70 (the upper boundary of the 1/2 Median Line channel Minuette operational scale fork);
- support level of 107.55 (upper boundary of the ISL61.8 equilibrium zone of the Minuette operational scale fork)
The breakdown of the upper boundary of the 1/2 Median Line Minuette channel (resistance level of 107.70) will determine the continued development of the upward movement of the currency of the "country of the rising sun" to the initial SSL line (108.29) of the Minuette operational scale forks with the prospect of updating the local maximum of 108.48 and reaching the UTL Minuette control line (108.85).
On the contrary, the breakdown of ISL61.8 Minuette (support level of 107.55) - JPY / USD movement will continue in the equilibrium zone (107.55 - 107.00 - 106.40) of the Minuette operational scale fork taking into account the development - 1/2 Median Line Minuette (107.30) - final Schiff Line Minuette (107.15) - the upper bounday of ISL38.2 (106.55) of the equilibrium zone of the Minuette operational scale fork.
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. Thus, 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