Here's a comprehensive analysis of the development options for the movement of currency instruments #USDX, EUR / USD, GBP / USD and USD / JPY from October 2, 2019
Minuette operational scale (H4 time frame)
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US dollar index
As further, from October 2, 2019, the development of the movement of the dollar index #USDX will begin to flow - it will be determined by the direction of the breakdown of the range :
- resistance level of 99.67 (the initial SSL line forks Minuette operational scale - local maximum );
- support level of 99.35 (warning line UWL61.8 Minuette operational scale fork).
The breakdown of the warning line UWL61.8 (support level of 99.35) of the Minuette operational scale fork will direct the movement of the dollar index to the boundaries of the 1/2 Median Line channel (99.20 - 99.10 - 98.95) and the equilibrium zone (99.00 - 98.80 - 98.60) of the Minuette operational scale fork with the possibility of reaching the ultimate Schiff Line Minuette (98.50).
On the other hand, a consecutive breakdown of resistance levels - 99.67 (the initial SSL line of the Minuette operational scale fork - local maximum) and 99.75 (the control line of UTL Minuette) will cause the continuation of the upward movement of #USDX to the warning lines UWL100.0 (99.95) and UWL161.8 (100.85) 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 development of the movement of the single European currency EUR / USD from October 2, 2019 will also be determined by the direction of the breakdown of the range :
- resistance level of 1.0930 (the lower boundary of the 1/2 Median Line channel Minuette operational scale fork);
- support level of 1.0890 (warning line LWL38.2 of the Minuette operational scale fork).
The breakdown of the resistance level of 1.0930 - the development of the movement of the single European currency will continue in the 1/2 Median Line channel (1.0930 - 1.0950 - 1.0980) of the Minuette operational scale fork, and if there will be a breakdown of the upper boundary (1.0980) of this channel, then the upward movement of this instrument can be continued to the equilibrium zone (1.1025 -1.1070 - 1.1110) of the Minuette operational scale fork.
The consecutive breakdown of the initial SSL (support level of 1.0890) and the control LTL (1.0879) lines of the Minuette operational scale fork will make it possible to reach the EUR / USD control LTL (1.0835) and LWL100.0 (1.0815) lines 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
Meanwhile, the development of Her Majesty's GBP / USD currency movement from October 2, 2019 will be due to the development and direction of the breakdown of the boundaries of the equilibrium zone (1.2145 - 1.2225 - 1.2300) of the Minuette operational scale fork. The movement markings inside this zone are presented in the animated chart.
The breakdown of the upper boundary of ISL38.2 (resistance level of 1.2300) of the equilibrium zone of the Minuette operational scale fork will determine the development of the upward movement of GBP / USD to the 1/2 Median Line Minuette channel (1.2445 - 1.2500 - 1.2550).
On the contrary, the breakdown of the lower boundary ISL61.8 (support level of 1.2145) of the equilibrium zone of the Minuette operational scale fork will make it possible to continue the downward movement of Her Majesty's currency to the start line SSL (1.2005) of the Minuette operational scale fork and minimum 1.1958.
The details of the GBP / USD movement can be seen in the animated chart.
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US dollar vs Japanese yen
Starting from October 2, 2019, the movement of the USD / JPY currency of the "land of the rising sun" will be determined by the development and the direction of the breakdown of the boundaries of the 1/2 Median Line channel (107.90 - 107.70 - 107.55) and the equilibrium zone (107.60 - 107.35 - 107.10) of the Minuette operational scale. The markup of working out the indicated levels is shown in the animated chart.
The breakdown of the lower boundary ISL61.8 (support level of 107.10) of the equilibrium zone of the Minuette operational scale fork - continuation of the downward movement of the currency of the country of the rising sun to the targets - the final Schiff Line Minuette (106.97) - 1/2 Median Line channel (106.55 - 106.00 - 105.50) Minuette operational scale fork.
However, if you return above the upper boundary of the 1/2 Median Line channel (resistance level of 107.90) of the Minuette operational scale fork, it will be possible to continue the upward movement USD / JPY whose targets will be - control line UTL (108.25) of the Minuette operational scale fork - control line UTL Minuette (108.50) - warning lines - UWL38.2 Minuette (108.60) and UWL61.8 Minuette (109.33).
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